Mersey MPs fight for child vouchers; 'Move will punish working women'.

Byline: ROB MERRICK

MERSEY MPs have urged Gordon Brown not to axe childcare tax breaks worth up to pounds 2,400 a year - warning the move will punish women and force many out of work.

They have protested at shock government plans to abolish childcare vouchers, which allow working parents to avoid tax and national insurance on payments to nurseries, nannies or childminders.

Around 350,000 people across Britain use the vouchers - introduced in 2005 - many of whom, it is argued, could not afford to work without them.

Last month, without warning, the prime minister announced that Labour would phase out the vouchers from 2011, although he insisted existing users would be protected.

Mr Brown said the money saved was better spent on free nursery places for two-yearolds from the poorest families, arguing the vouchers were "poorly-targeted" - with some even used to pay for horseriding lessons.

More than 60,000 people, mostly women, have signed a petition on the Downing Street website attacking the decision, warning that Britain already "lags behind the rest of Europe" on childcare.

Now John Pugh (Southport), Eddie O'Hara (Knowsley South) and Bob Wareing (West Derby) are among 63 MPs who have signed a parliamentary motion calling for a rethink.

Mr Pugh said: "As a father of four, I've a lot of sympathy with the extra burden that having children imposes - especially during a recession - and these vouchers certainly make a difference.

"It's not the hard-pressed parents with young families who are best-equipped to help us cut the budget deficit."

The motion says Mr Brown is wrong to argue that the scheme mainly helps highearners, insisting it is families just above the threshold for means-tested benefits that benefit the most.

And it "calls on the government to consider the serious implications of the proposal for worsening the gender pay gap and reducing opportunities and incentives for two parents to work".

Some MPs fear the issue could become as politically damaging to Labour as Mr Brown's notorious decision to axe the 10p tax rate, which triggered a huge public backlash.

Working women are a particularly important voter group for Labour, which has ploughed huge resources into benefits such as increased maternity leave and pay.

Among senior Labour figures angry at the scrapping of vouchers are former Health Secretary Patricia Hewitt and Caroline Flint, the former Europe minister.

Both parents can use the vouchers, potentially saving couples pounds 2,390 a year. Each higher rate taxpayer can save pounds 1,195 and a basic rate taxpayer pounds 962.

However, a No 10 source insisted: "This was not designed as a benefit for rich people. It is not being as well targeted as it should. We believe it is right to redirect the money at nursery places for two-year-olds."