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Breaking News March 14th 2018 Childcare scheme gets six-month reprieve

14 Mar 2018

Education Secretary Damian Hinds made the concession during a Commons debate yesterday March 13th.

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Statistically speaking Childcare Vouchers are a necessity for any business!


While it is well known that customers and demand drive the business environment, it is the employees and their service levels that meet the demand and sustain the environment. A qualified, well-trained, loyal work force is the backbone of each and every business looking to achieve success and profitability, and it is the responsibility of the company, to draw and retain the best minds and hands in the industry by means of adequate financial and other compensations commensurate with the work involved. Britain's working population is on the growth trajectory, and women in their childbearing age represent roughly one-third of this group. It is also expected that 70% of job vacancies by 2016 will employ women. Working parents, irrespective of whether they are single or together, are faced with a common responsibility of providing quality health care for their children.

Childcare Costs... the bigger picture

Childcare is an important yet costly and unavoidable expense of any parent, and also a matter of constant concern that directly impacts the quality of the work, productivity and availability of an employee. A childcare voucher scheme is basically a cost-effective government scheme to manage otherwise expensive care required in the case of children. The scheme ideally works from a salary sacrifice, requiring a standard amount cut from the parent's salary in return for a childcare voucher that can be re-deemed against any kind of childcare expenses including nannies, holiday play plans, nurseries, playschools, and registered child minders. Businesses may also choose to offer childcare scheme as an additional employee benefit to ensure employee satisfaction and improve brand image in the process.

Business Benefit

Businesses can in fact gain the confidence and loyalty of their employees or human resources, by opting for suitable Childcare Vouchers Schemes to help working parents to plan for childcare expenses regularly so that they can avail the benefits when needed. Working parents will be able to save about £1,000 per year, with tax relief, depending on the tax rates applicable on the earnings, with weekly tax and NI exemptions at £55 for basic-rate payers, £28 for higher-rate payers, and £22 for additional-rate tax payers. Employees get to save on both tax and NI on these vouchers.

Business Profit

Apart from gaining the confidence of a dedicated human resource or workforce, Businesses also experience a monetary benefit by implementing the Childcare Vouchers Scheme. Businesses can choose to outsource the task to an external voucher provider company, resort to an in-house self-administered process, or directly pay the employees' child care provider through a directly-contracted childcare scheme. Companies can save up to £402 annually on the National Insurance for every parent enrolled in the Childcare Vouchers Scheme, allowing the amount to be channelised into other projects. Costs incurred on utilising the service of popular childcare voucher scheme providers may be fixed or may vary depending on the value of the childcare voucher opted for, usually ranging between 5% to 8%, though there may be schemes charging a lesser percentage. Either way costs are comparatively lesser than the NI savings.


Salary Sacrifice, in particular the Childcare Voucher scheme is a win-win scenario to both employers and employees, serve to create a wonderful work-life balance, ensure employee satisfaction and loyalty, while also being a great means to save money in the process.


Author: Eoin Olivers photo

Author: Eoin Oliver

Eoin Oliver is a web designer and blogger with six years of experience writing content and designing graphics for clients large and small. For the past three years Eoin has been focused on researching and writing about the childcare voucher scheme. When not hard at work, Eoin can be found in the company of his 4-legged companion Layla.

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