BURY North MP David Chaytor has welcomed the Government's commitment to assist employer-supported childcare.

Praising the move, he says that employers have what he termed "an important role to play" in helping their staff to find affordable and good quality childcare.

Mr Chaytor added: "Gordon Brown's pre-budget Report, published just before Christmas, will greatly assist employers to provide support towards the childcare costs of their employees.

"From April 2005, there will be new tax and NI breaks for employer-supported childcare of up to £50 per week per employee."

The MP explained: "In return for investing in childcare costs on behalf of their employees, businesses will benefit from increased staff retention, saving on recruitment and training costs, improved staff morale and less absenteeism. This can all lead to increased productivity."

Mr Chaytor stressed it was important that businesses had access to information to help them engage with the issue of their employees' childcare responsibilities.

"Employers will be able to contract directly with a childcare provider on behalf of their employees, and the first £50 per week will be free from tax and NI," he went on.

"Alternatively, employers will be able to provide vouchers to employees free of tax and NI up to £50 per week."

Employers requiring more information should contact the local tax office or alternatively log on to the website on www.inlandrevenue.gov.uk where they can get full details.