Cameron mulls tax breaks for families hiring cleaners

David Cameron will consider providing tax breaks to middle class families who hire cleaners or cooks, he told delegates at the Nordic-Baltic conference in Stockholm last month.

The proposal, based on a successful 'maid credit' scheme already operating in Sweden, could save middle-class families thousands of pounds a year in fees for domestic help and encourage more women to return to work after having children.

It would also act to cut the number of illegal workers, who are often paid "cash in hand", reports the Telegraph.

In addition, the proposal would boost employment rates and is designed to appeal to women with young children.

Cameron told delegates that he was keen to explore Sweden's experience of "encouraging and helping women go out to work".

Services eligible for the tax breaks under the Swedish model include cooking, cleaning, gardening and child care.

A similar system in Finland resulted in 92,000 people taking up the scheme in one year, with the total tax deduction amounting to €42.70m (£35.80m).

Labour said of the proposal: "This demonstrates how out of touch David Cameron is about the pressures facing women in this country.

"He is suggesting tax breaks for people who can afford domestic workers at the same time as he is cutting tax credits for working parents and removing child benefit from squeezed families."