Changes to Childcare vouchers1>
Dear Parents and Carers,
This autumn, there are going to be some changes to the way Childcare vouchers work. The Government is launching a new Tax Free Childcare scheme. Currently, parents can use childcare vouchers to make savings’ of up to £933 (potentially doubling if both parents use childcare vouchers) on childcare costs each year. Although we have not yet been given a date there will be a cut off point in the autumn for signing on to the current voucher schemes. Once you are signed on to the vouchers you can continue to use this incentive once the new scheme is introduced.
The new Tax- free childcare scheme will see the Government subsidising 20% of an employee’s childcare cost, which in turn will save up to £2,000 per child, per year.
To access a maximum savings on Tax free Childcare, parents would need to be spending at least £8,000 per year on childcare, whereas with childcare vouchers you would only need to spend £2,916 per year to access the maximum savings.
Please ensure that you are on a scheme through your employer before it’s too late!
If you need any further information please do not hesitate to contact me.
(A copy of this is in your child’s tray)