Childcare vouchers are a government initiative to help working parents pay for childcare. Childcare vouchers are exempt from National Insurance and tax meaning parents can each save up to £1,195 per year on childcare. Employers can also save up to £373 per employee per year. Employers benefit from increased staff retention, productivity and loyalty as well as reducing their recruitment costs.
Vouchers are ordered and used by employees to pay for their childcare arrangements.
Childcare vouchers can be offered to employees in three ways:
As a straight benefit (benefit in kind) where the employer provides the employees with childcare vouchers on top of their normal salary
As a solo salary sacrifice scheme where employees nominate to take part of their salary as childcare vouchers
As part of a benefits scheme where employees either nominate to take childcare vouchers in place of an alternative benefit or fixed benefit allowance or as part of a salary sacrifice.
At Croughton Pre-School, we presently have parents using ChildCare Choice (Sodexho) and Computershare Voucher Services (formerly BusyBees) but there are a number of different organisations offering vouchers. With effect from 24 July 2010, we can now accept vouchers from Imagine Co-operative Childcare (account number 85013672).
From January 2012 we also accept childcare vouchers for Edenred (Carer Account Number P20690819).
For more information on the getting help with pre-school costs click here.