The way it will work is as follows: - You open an online account through GOV.UK and pay into it to cover your childcare costs - The government then tops up your account with a 20 % contribution (the same as the basic rate of tax), up to a maximum contribution of # 2,000 a year per child (bounty.com)
Those on the basic rate of tax currently pay 40 % when you add in both forms of National Insurance. (totalpolitics.com)
The revised scheme hits the rich hardest, but also requires a substantial increase in the basic rate of tax to 30 %, as well as lifting national insurance to 12 % of all income. (theguardian.com)