An employee benefit that enables employers to support parents with the cost of childcare

Today around 350,000 employees use childcare vouchers, a cost-saving employee benefit available to working parents and carers via their employer.

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While the scheme closed to new entrants in October 2018, existing users can still take advantage of the vouchers to pay for childcare up to the age of 15.

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Childcare vouchers can also be used for registered childminders nurseries, before- and after-school clubs, holiday camps and some elements of independent school fees.

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Childcare vouchers work through salary sacrifice Where you swap part of your salary for a childcare voucher, saving Tax and National Insurance in the process.

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The highest yearly amount you can save is £933 per year but exact savings will vary among individuals depending on the rate of tax you pay and the total value of vouchers required each year.

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Employers who maintain Childcare Voucher schemes also make NI savings.