While the politicians are still debating the benefits of the Government’s new childcare support scheme announced last month, the message from NW Brown’s Childcare voucher specialist Sarah Gleadell is loud and clear “Join the childcare voucher scheme and encourage your employees to join your scheme now”.
The Government plans to replace the existing Childcare Voucher scheme with a new system that will enable working parents to claim back up 20% of their annual childcare costs. David Cameron claims this will be a “boost direct to the pockets of hard-working families”. The new system will be phased in from 2015 and the Government says that 1.3million families will benefit.
However as Sarah explains “While the pros and cons of each scheme will depend on individual family situation, the biggest change is that parents currently will only be able to claim for children up to the age of 5 in the new scheme, whereas with the current childcare voucher scheme you can claim until they are 16. If you are already in the scheme, you will continue to be able to claim until your children are 16. If not, it just makes sense to join the current childcare voucher scheme before it closes to new entrants in autumn 2015”.
As far as employers are concerned, the new arrangement will not provide any national insurance savings, which for some could be a significant loss. However, providing easy access to childcare vouchers is still an opportunity for employers to generate good will and higher morale amongst staff.
Whether you are an employer or employee, if you would like advice about your existing Childcare Voucher scheme or to find out if you are eligible please contact Sarah Gleadell on 01223 720250 or firstname.lastname@example.org or visit our Childcare Voucher page.