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20 May, 2015

‘Confusion’ over childcare voucher changes

BBC News | Business | Louise Greenwood | 20 May 2015
Families may be left “confused” by changes in the system of childcare support taking place later in the year, a charity has warned.

Some 450,000 families in the UK claim support through the workplace voucher system.

These vouchers can be bought by parents from their salary before tax is deducted, but will be replaced in the autumn by new top-up payments.

The Family and Childcare Trust said families had big decisions to make.

Changes

At present, the Employer Supported Childcare scheme allows working parents, who are not self-employed, to claim support to pay for registered childminders.

The vouchers, worth up to £243 a month, can be bought by each parent from their salary before tax. For basic rate taxpayers, this can mean an annual saving of £930.

In the autumn, the scheme will be replaced with a new “top-up” payment, where working families will be able to claim government support worth 20p for every £1 they spend on childcare.

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