Money-saving expert Martin Lewis has been accused of inadvertently costing the UK billions of pounds through a campaign to exempt childcare vouchers from taxation. The policy, which was introduced in 2011, has been widely credited with helping millions of families across the country. However, a recent report has revealed that the scheme has disproportionately benefited the wealthy, with the top 10% of earners receiving the majority of the benefits.
According to a study by the Institute for Fiscal Studies (IFS), the policy has cost the UK exchequer £1.7 billion a year, with the majority of the benefits going to households earning over £50,000. MPs have now called for changes to the system to prevent similar situations in the future.
The criticism comes as the government continues to grapple with the issue of tax avoidance and evasion. Chancellor Rishi Sunak has been keen to address the issue, introducing a number of measures aimed at closing tax loopholes and increasing transparency. However, the childcare voucher scheme has been highlighted as a prime example of how the tax system can be exploited by the wealthy.
Labour MP Wes Streeting, who has been a vocal critic of the policy, has called for a review of the system to ensure that it is fair and equitable. 'This policy has clearly been a disaster for the Exchequer,' he said. 'We need to take a hard look at how we can make the tax system more progressive and ensure that everyone is paying their fair share.'
The government has yet to comment on the criticism, but sources close to the Treasury have confirmed that a review of the policy is underway.