Childcare vouchers are part of a little known government scheme, which can save many working parents with kids aged up to 15, over £1,000 a year on childcare. It needs to be offered via employers, but many large and small companies take part.
The key is they enable you to pay for childcare out of your Pre-Tax and National Insurance income – in other words, because you exchange part of your salary for vouchers, you make savings by not having to pay tax or NI on the value of vouchers.
The exact amount you can save depends on how much you earn and how much tax and NI you currently pay, but it may be possible for you to save up to £904 per year if you are a basic rate taxpayer, and up to £1,195 per year if you are a higher rate taxpayer.
Because the savings are per person and not per child, both parents can take childcare
vouchers – so if you have a partner who also works for an employer that operates a scheme, you could be eligible for twice the savings.
Any working parent, or those with parental responsibility for a child living with them, is eligible for the vouchers but to get them, your employer must run a scheme, so:
- Ask your employer if it runs a childcare voucher scheme. Providing childcare vouchers shouldn’t cost your employer any money. In fact, as they don’t pay national insurance on the vouchers, it actually saves them money too.
- If they don’t, try and persuade them. Perhaps chat to other parents and go as a group to request the facility.
There are many different scheme operators and vouchers are available in electronic or paper format and normally your employer will choose which format you’ll receive your vouchers in. We are already registered with some operators and usually you just need to provide our Ofsted registration and bank details to register with a new operator, so please speak to one of our staff if you need these.
The following links to websites with further information may be of some to help you decide if childcare vouchers might work for your family:
Please let us know if the link has been moved or the content is no longer appropriate. We do our best to check the links regularly but cannot be held responsible for the content of external sites.