Encourage working parents to join childcare voucher schemes

On 1 July the government announced that after a final appeal from the Childcare Voucher Provider Association was dismissed by the Supreme Court that the current employer-supported childcare voucher scheme will now remain open to new entrants until tax-free childcare launches in 2017.

Parents can also elect to stay in the employer-supported scheme following the implementation of the new scheme, for as long as their employer continues to offer childcare vouchers and they signed up to receive vouchers before tax-free childcare came into effect.

The tax-free childcare scheme will provide up to £2,000 a year of childcare support per child.

Details for the implementation of the new scheme are yet to be released, but the government has stated that the tax-free childcare scheme will provide up to £2,000 a year of childcare support per child to up to 1.8 million parents.

Children working parent

Alan Fergusson, Employee Benefits Director at Mattioli Woods said:

“It is good to finally get some clarity on the date of the roll out for the new scheme. Originally scheduled for this autumn, employers and their employees will be able to plan properly now.

"Employers will still be able to set up schemes, and employees enrol within them; and until the new scheme detail is finalised, employees would do well to leave their options open by joining. With questions over other salary sacrifice benefits at the moment as well, then this is one change that employers do not need to worry about just now.”

This article was supplied by Mattioli Woods.

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