childcare vouchers

The UK government has proposed big changes to the childcare voucher scheme under TAX Free Childcare. Employee voucher schemes are being phased out except for those who have already joined.

Employers previously could provide childcare vouchers and then pay reduced national insurance contributions on the amount they provide. Most OSC services will accept childcare vouchers.

The previous voucher scheme is fully explained in this government brochure. If a parent is not already in an Employer voucher scheme it is likely they now can claim under Tax Free Childcare

As noted under Childcare Tax Credits, parents might lose out if they accept employer/ or TAX Free Childcare accounts if they are borderline in terms of being able to get Childcare Tax Credits.

Parents cannot claim both tax credits, or universal credit, and Tax Free Childcare- It is worth parents calculating which scheme will give them the most support with childcare costs here: www.gov.uk/childcare-calculator

last updated: 07/07/2023