Childcare Vouchers are an employee benefit available to all eligible working parents whose employers run the scheme. Childcare Vouchers benefit both basic and high rate tax-payers.
Childcare Vouchers can be used to pay for all types of registered childcare, including holiday clubs, before and after school clubs, childminders, nannies, nurseries and play schemes.
By joining the scheme, working parents are entitled to exchange a portion of their gross salary for Childcare Vouchers, up to the value of £243 per month, or £55 per week . This portion of your pay is exempt from Tax and National Insurance Contributions, which means you can make savings of up to £1,196* per parent per year on your childcare costs.
Both parents can take Childcare Vouchers which increases the potential saving to £2,392* per family, per year.
Childcare Vouchers are a government work-life balance scheme, supported by HM Revenue & Customs (HMRC).
A further advantage of the scheme is that there is no need to change your existing childcare provider.