Childcare Vouchers - A Parents Guide
You will be eligible for Childcare Vouchers if you are a parent or have parental responsibility for a child living with you. You can use Childcare Vouchers to pay for Registered Childcare until the 1st September following your child's 15th birthday. If your child is disabled, you will however be able to use the Childcare Vouchers up to 1st September following their 16th birthday.
Availability of Childcare Vouchers
Unfortunately Childcare Vouchers are not available for the Self Employed and there are currently no plans for this to change.
You will only be able to receive Childcare Vouchers if your employer operates a Childcare Voucher Scheme, you join the scheme, and then agree to make a Salary Sacrifice. If you are unsure, we recommend speaking to your HR or Payroll Department, and in the unlikely event you discover your employer does not operate a Childcare Voucher Scheme ask them to read our Employers Guide to Childcare Vouchers and browse our directory of Childcare Voucher Providers to view the types of Childcare Voucher Schemes available. An remember, don't forget to remind your employer that both of you will benefit if they introduced a Childcare Voucher Scheme into the workplace.
How much can I save using Childcare Vouchers?
Paying for Registered Childcare using Childcare Vouchers will save you money. How much? Well, this will depend on your rate of Income Tax and the type of National Insurance Contributions you make.
A Basic Rate Taxpayer, opting to receive the maximum monthly allowance of Childcare Vouchers (currently £243) can reduce the cost of their childcare by up to £933 per year. For Higher Rate Taxpayers the savings are smaller at £623 and further reduced to £606 for Additional Rate Taxpayers.
These savings can quickly add up as the limits apply to both parents! If both parents were Basic Rate Tax Payers and opted to receive the full monthly allowance of Childcare Vouchers, they could save £1866 per year! For a personal illustration of the potential savings you could make by using Childcare Vouchers to pay for your Childcare please use our Childcare Vouchers Savings Calculator for Parents
Types of Childcare
You can only use Childcare Vouchers to pay for Registered or Approved Childcare. This includes, but is not limited to, Nurseries, Pre-schools, Playgroups, Childminders, Holiday Play-Schemes, After School Clubs (operated by the School or Local Authority), Nannies and Au-pairs. You can check your Childcare Provider's status by contacting one of the following governing bodies applicable to your region:
- England OFSTED (Office for Standards in Education) - 0845 601 4771
- England Childcare Approval Scheme - 0845 767 8111
- England & Wales Over 7s Quality Assurance Scheme
- Wales CSIW (Care Standards Inspectorate for Wales) 01443 848450
- Scotland The Care Commission 01382 207 200
- Northern Ireland Contact the children's centre in your local Health & Social Services Trust.
Using Childcare Vouchers
When you join your employer's Childcare Voucher Scheme you will be required to to give the details of your Childcare Provider. This will enable the administrator of your employer's Childcare Voucher Scheme to find out if your Childcare Provider accepts the vouchers from the scheme. (We recommend speaking to your Childcare Provider to ask if they accept the Childcare Vouchers provided by your employer prior to joining the scheme.) In the unlikely event that your Childcare Provider is unfamiliar with your Childcare Vouchers, all they will need to do is complete a simple registration form to enable them to accept your Childcare Vouchers. (In this case the Childcare Voucher scheme administrator will contact your Childcare Provider directly.)
Your Childcare Provider will expect payment as usual so you should ensure that your Childcare Vouchers reach them at the same time as you would normally be expected to pay for your Childcare. Childcare Vouchers are flexible enough to permit you to setup regular, ad hoc or even one off payments. If you prefer to use paper Childcare Vouchers you will simply need to print them off from your online account or request the Childcare Vouchers from your Childcare Provider up to the current balance of your account.