The benefits of Childcare Vouchers
If you have children under 16 and pay for registered childcare or out of school clubs and
activities, you could save money by joining your employer’s Childcare Voucher scheme.
What are Childcare Vouchers
If you are using registered or approved childcare, you can choose to take part of your salary in
Childcare Vouchers to pay for it which are tax and National Insurance (NI) free. This means you get
extra value from your pay packet each month.
In order to help you make these savings, your employer has introduced a Childcare Vouchers scheme
in partnership with Edenred. They launched the first Childcare Vouchers scheme to the UK over 20
years ago, and have made it as easy as possible for you to enjoy the many different benefits that
Childcare Vouchers bring.
Helping you save up to £933 a year
The savings you can make are per person – so if you have a wife, husband or partner who also works
for an employer that operates a scheme, you could double your household savings.
The exact amount you can save depends on how much you earn and how much tax and NI you
currently pay – however, it may be possible for you to save up to £933 a year.
Childcare Vouchers are tax and NI exempt up to:
· £243 a month (£55 a week) for basic rate taxpayers
· £124 a month (£28 a week) for higher rate taxpayers
· £110 a month (£25 a week) for additional rate taxpayers
To establish which rate of tax you are likely to pay and therefore how much exemption you are
entitled to, we will perform a ‘basic earnings assessment’. This will include:
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Basic salary
Taxable benefits
Car allowance
Guaranteed bonuses
Shift allowances
Commission
Discretionary and performance related bonuses are not included in this assessment. Once completed,
this assessment will remain valid until the start of the next tax year, regardless of any changes in
circumstances throughout the year; therefore your tax and NI exemption will not change throughout
the year.
Those who were on the scheme within this employment before the 6th April 2011 will be entitled to
tax and NI exemption on £243 a month regardless of the level of tax they pay until they leave the
scheme for longer than 12 months, change employer or no longer qualify.
Where Childcare Vouchers can be used
Childcare Vouchers can be used to pay for the care of children up to the age of 15, or 16 if they are
disabled, including:
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home based care such as childminders, nannies and au pairs
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pre-school care such as nursery schools, play schools and crèches
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care for older children such as out of school clubs (breakfast clubs, afterschool clubs, boarding
and holiday clubs)
You can use your Childcare Vouchers to pay more than one carer if you wish. The only condition is that
your carer(s) will need to be registered with or approved by the appropriate body.
The current registration and approval bodies include:
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Ofsted Childcare Register – Compulsory (England)
Ofsted Childcare Register – Voluntary (England)
Local Health and Social Services Trusts (Northern Ireland)
Social Care and Social Work Improvement Scotland (SCSWIS) (Scotland)
Childcare Approval Scheme (Wales)
The Care and Social Services Inspectorate Wales
It is likely your chosen carer(s) has previously been paid with Edenred vouchers and is already affiliated
to the network. Simply ask them for their Edenred Account Number which you will need to transfer
electronic vouchers to them online. Your carer will then be paid automatically by Edenred each time
you make a transfer.
If they have not been paid with Edenred vouchers before, they can complete a carer application form
online by visiting www.childcarevouchers.co.uk and clicking on ACCEPT VOUCHERS in the Childcare
Providers’ area. You can download a printable application form from the same website if your carer
does not have internet access.
Visit www.childcarevouchers.co.uk to find out how you could pay your carer with Childcare Vouchers.
Simple to use
Electronic vouchers are the most popular format and work in a similar way to online or telephone
banking.
The vouchers are paid into your personalised Childcare Vouchers account each month that you can
access either via the internet or telephone in order to request payments to your carer(s). You can even
set up a standing order to request repeat payments.
NEW! Parents can now access their online account via a mobile optimised website, specially designed
for Smartphones and Tablets.
Easy to join the scheme
If you decide you would like to take part of your salary in Childcare Vouchers, enrolling is quick and
easy. Please speak to your employer to find out how to join the scheme.
What happens next
Once you have completed your form, simply check with your employer when you should expect to
receive your first vouchers.
Your employer will then contact Edenred to order the vouchers on your behalf, to the value you have
chosen on your form.
Shortly before you receive your first vouchers, you will be sent a Parent Welcome Letter to your home
address explaining how to use your Childcare Vouchers and giving you details of who to contact if you
have any questions about your Childcare Vouchers account.
Getting more from your Childcare Vouchers account
Parent Hub
The Parent Hub website from Edenred provides parents with a wealth of content, including articles
and vodcasts, from eminent experts in the world of parenting. A range of subjects are covered
including:
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Sleep
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Health and nutrition
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Work/life balance
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Step families and single parenting
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And more!
You can access Parent Hub from your online account.
You also have the opportunity to post questions on a relevant topic, and popular questions will be
answered by an expert in that field.
Advantages
If your employer arranges for you to receive electronic Childcare Vouchers and requests access to
Advantages, you will be able to enjoy extra savings with a range of discounts and special offers
designed to help make your money go even further.
These include shopping vouchers and reloadable gift cards at discounted rates at a range of retailers.
These can help you get a discount on clothes, groceries, DIY, technology and holidays. Plus discounted
theme park tickets for family days out and as the chance to earn money through cash back offers too.
Family Issues Helpline
Once you have joined the scheme you will also be able to access a free and confidential Family Advice
Line offering support and information on a wide range of issues that affect you and your family. A
Childcare Advice Line is also available to help you find childcare that meets all of your needs.
To find out more information
Simply visit Working Parents Zone. Here you can speak with a childcare expert in one of the
regular live chat sessions.