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Workplace childcare vouchers – get the best out this scheme during COVID-19

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Workplace childcare vouchers – get the best out this scheme during COVID-19

As many employees began working from home during the height of the coronavirus pandemic, they used less paid childcare, as many before school clubs and nurseries were closed. 

Therefore, employees who use the childcare voucher scheme will most likely have unspent vouchers in their related accounts if they did not reduce their contributions – which come directly and automatically from their salaries. 

To avoid a stockpile of childcare vouchers, employers must remind their employees that they can decrease their contribution to a lower amount, as long as both sides agree. These contributions can increase later on, and varying the amount will not affect eligibility to the scheme if the original scheme conditions are met.

Tax-Free Childcare

Although, if your employees undergo a salary sacrifice to receive these childcare vouchers, then you could check to see if the Tax-Free Childcare (TFC) would suit them better. 

Under this support, parents receive an extra £2 from the Government for every £8 they pay into a childcare account. Every year, eligible working parents can get up to £2,000 per child under 12 years old and £4,000 per child under 17 years old who are disabled. 

For more information or advice on the childcare voucher scheme and contributions, please contact our experts today. 


Urgent COVID-19 Notice
Working From Home

Our first priority is the health and well-being of our team and our community. Therefore, with a heavy heart we have made the decision to temporarily work from home with immediate effect.

We are listening to the government’s daily updates, taking each day as it comes, and will reopen our offices as soon as it is safe to do so.

If you have any questions or need to discuss any issues at all please do email or call us on our usual number 01634 570 390.

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We hope everyone is keeping well and staying safe.

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