Market models for tax-free childcare vouchers

HM Treasury hired Economic Insight to evaluate the likely pros and cons of alternative market designs in relation to the provision of tax-free childcare vouchers.  Our report focuses on providing an economic evaluation of both ‘open’ (i.e. competitive voucher provision) and ‘closed’ (i.e. a limited number of suppliers) models. 

Tax-free childcare represents a major policy initiative for the coalition Government and we were delighted to be appointed as the economic advisers to the Treasury on this matter.  Our final report, also published by the Treasury today, can be found below.