Speaking on the issue, Carla Lockhart MP said:

“I have written to the Chancellor to seek an urgent meeting with the Treasury following HMRC’s proposal to remove the long-established 10% wear and tear allowance for childminders who are required to move onto Making Tax Digital.

For almost four decades this allowance has recognised the unique nature of home-based childcare. Childminders operate from their own homes, using their living rooms, kitchens, gardens, equipment and family spaces to provide professional care. The 10% allowance was designed to reflect the inevitable wear and tear that comes with that responsibility, while also providing a simple and proportionate system for small providers.

Under these proposals, childminders who fall within the Making Tax Digital threshold would lose access to this straightforward allowance and instead be required to itemise individual expenses. That represents a significant increase in administrative burden for small, often single-person businesses, and creates the risk of reduced financial viability at a time when the sector is already under immense pressure.

I am working closely with NICMA, the Childminding Association, and engaging directly with local childminders to ensure that the very real concerns within the sector are clearly understood by Government. There has been no meaningful consultation in Northern Ireland, despite the fact that our childminding model remains home-based and distinct in important respects.

The childminding workforce in Northern Ireland has declined sharply in recent years, with a significant reduction in registered providers and available childcare places. Families are already struggling to access affordable and flexible childcare. Any further policy change that increases costs or bureaucracy risks accelerating that decline and reducing capacity even further.

Childminders are not simply small businesses; they are a vital pillar of our childcare infrastructure. They provide flexible, community-based care that enables parents to work, supports early years development and underpins our wider economy. At a time when we should be strengthening childcare provision, it is deeply concerning to see proposals that may inadvertently weaken it.

I have therefore called on the Treasury to pause these changes, to properly assess their impact in Northern Ireland, and to engage directly with representatives of the sector. I will continue to press for a fair and proportionate approach that supports, rather than penalises, those who provide this essential service.”