Government announce six-month extension of the Childcare Voucher scheme
Following a Parliamentary Debate and Vote to keep Childcare Vouchers (13.03.18) open to new entrants, the Government has decided to offer a six month extension to the Childcare Voucher scheme. This extension will allow parents to sign up and employers to ensure they are offering the scheme. It will also allow Employers For Childcare to continue our lobbying work to ensure the long term provision of Childcare Vouchers as part of a comprehensive package of childcare support for working families.
To sign up for Childcare Vouchers or find out more from our team, get in touch here or call 028 9267 8200.
Childcare Vouchers are available to all working parents in the UK. They can help each parent make up to £933 of tax and National Insurance savings per year on their childcare costs, until their child is 15. The scheme is implemented through your employer’s payroll via a ‘salary sacrifice’ scheme, which means you swap part of your salary to pay for childcare.
Childcare Vouchers can be used to pay for all types of childcare as long as it is registered or approved by the registering body for the region. They are most commonly accepted by registered childminders, day nurseries, playgroups, holiday schemes, breakfast and afterschool clubs.
What are the benefits of Childcare Vouchers?
Families can save thousands of pounds each year. Childcare Vouchers operate in a similar way to online banking, meaning fast, easy payments direct to your childcare provider(s).
- Potential family savings of £1800 a year
- Each parent could take up to £243 per month their salary as Childcare Vouchers
- This amount is exempt from tax and National Insurance Contributions, saving each parent £77 per month
- Childcare Vouchers are open to both mums and dads, meaning double savings
- Can be used on all forms of registered childcare
- Fast payments direct to your childcare provider
- Available for children up to the age of 15, or 16 if registered disabled
Parents who use Vouchers can save nearly £1,000 every year because their childcare costs are deducted from their salary before tax and NIC is applied.
|Tax and NIC applied||Maximum amount that can be sacrificed per month||Total monthly savings|
Get in touch for more information or call 0800 028 3008.
If your employer does not currently offer the Childcare Voucher scheme we would be happy to help them.