I'm sure everyone one here will claim to always fully declare their income. The reality is they don't.

The new government scheme will make some parents who pay a childminder worse off if they took full advantage of the £243 scheme. However they have been extremely clever with the new scheme as it's open to all.

It will also make many childminders worse off as they will have to fully declare their real income. For example at the moment you mind little Johny @ £800 pm. Every month you bill Johnys mum and dad and they pay you cheque/cash/bank transfer.

From late next year my understanding is you bill them and they will pay £640 and the Government top it up with £160. You still get your £800 but the Government now know you've got £800. That's £9,600 you have to declare as income whereas before perhaps you weren't declaring anything... or perhaps just declaring half of it....

Looks like the scheme will actually be self funding due to additional tax revenue