Queen's Speech 2014: Parents Eye £2,000 Tax-Free Childcare

The UK government plans to help 1.9 million families with a childcare cost subsidy worth up to £2,000.

The proposal, which could come into effect in September 2015, was officially announced in the Queen's speech during the state opening of parliament.

"A bill will be introduced to help working families with childcare costs," the Queen said.

Ministers explained that the move will help working families by giving support equivalent to basic rate tax relief on money spent on childcare, up to a maximum of £2,000 ($3,341, €2,457) per year for each child under 12.

So for every £8 that a parent pays for childcare, the government would contribute £2.

The government said that one of the benefits of the bill would be to enable parents to go out to work if they want to and provide security for their families.

Tim Humphries, a senior tax manager at accountancy Menzies LLP, told IBTimes UK that the extension of government support for childcare costs to self-employed parents would have the biggest impact.

"Previously the childcare support was not available to the self-employed and this is going to be one of the biggest changes," Humphries explained.

Ministers also intended to extend the government's support to parents working for the 95% of firms who do not currently offer Employer Supported Childcare (ESC).