Work/life balance
Childcare voucher scheme
What are childcare vouchers?
Childcare voucher schemes have been available for over 10 years.
Childcare vouchers can be provided in two ways:
- As a benefit in kind
- As a salary sacrifice scheme
Paper format vouchers
- This is the traditional way of providing childcare vouchers
- They are available in multi denominations
- Each voucher has a unique barcode to enable clear audit trails
- This is the preferred options for those employees without access to a computer
- The employee receives an 'actual' paper voucher which they hand to the childcarer
E-vouchers
- Complete flexibility for parents
- These schemes are set up in the same way as paper based schemes
- Each employee has their own on-line account
- E-voucher funds are paid in to the employee account
- Employee pays their childcarer directly into their bank account
Dual system
- Dual system - best of both worlds
- Maximum flexibility for employers
- Freedom of choice for employees
- No additional administration
- No additional cost
Why use childcare vouchers now?
- Employers are able to provide Childcare Vouchers to employees free of tax and national insurance, for up to £55 per week
- More employees are likely to benefit
- Childcare savings will be significantly higher
- Savings may be between £816 - £1066 per year
- Due to this, employee demand for Childcare Vouchers are set to grow
