Childcare Voucher Scheme Now Closed to New Entrants


As of 4th October 2018, the Childcare Voucher scheme closed to new entrants. This means that if employees are not already benefiting from Childcare Vouchers, they can no longer join the scheme. Employers who do not currently have a Childcare Voucher scheme in place are no longer able to set one up.

The good news is that if employees are currently receiving Childcare Vouchers they can continue in the scheme for as long as they remain eligible.

Employees who have temporarily opted out of Childcare Vouchers, for example due to maternity leave or a career break, can re-join the Childcare Voucher scheme and will remain eligible provided they:

  • joined the scheme prior to 4 October 2018
  • make at least one salary sacrifice (more than £0) within each 52 week period
  • do not leave the scheme in order to use Tax-Free Childcare, and
  • do not change employer
For example, if an employee opted out of Childcare Vouchers in June 2018, they would be able to re-join their employer’s scheme provided they make a salary sacrifice payroll deduction by May 2019.

If a parent changes employer then they will not be able to join their new employer’s Childcare Voucher scheme.

If an employee is considering leaving Childcare Vouchers to join Tax-Free Childcare it is strongly recommended that they seek advice. Some families will be better off using Tax-Free Childcare, while others are better off using Childcare Vouchers, Tax Credits or Universal Credit, or a combination of these. If an employee leaves Childcare Vouchers to join Tax-Free Childcare they will not be able to return to the Childcare Voucher scheme. They can, however, continue to use up any remaining Childcare Vouchers in their account to pay for registered childcare.

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The CVPA is the industry association established to represent the views of childcare voucher provider companies and to formulate best practice which protects all stakeholders' interests.

 

This website provides information about the CVPA, childcare vouchers, and the new Tax-free Childcare scheme.

 

If you have any queries please get in touch using the contact form opposite. For press queries only please contact Beatrice Allen on beatriceallen@wacomms.co.uk or 0203 102 3626 / 07715 644 547 .