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What are child care vouchers?

Childcare vouchers are an employee benefit available to all eligible working parents

Launched in 1998, childcare vouchers are a scheme run by HM Revenue & Customs (HMRC).

They are a Government-approved, tax-efficient way of paying for childcare. If you join the scheme, you can exchange up to £243 a month of your gross salary for childcare vouchers.

The part of your gross salary you exchange for childcare vouchers is tax-free and exempt from National Insurance contributions (NI). Because of this, you can make savings of up to £933 a parent, a year.

Both parents can request childcare vouchers, giving a potential family saving of £1,866 a year!

They can be used to pay for a wide variety of childcare

All registered childcare settings can accept childcare vouchers as a method of payment for children up to the age of 16 including: 

  • ·     Nurseries
  • ·     Nannies
  • ·     Au pairs
  • ·     Crèches
  • ·     Childminders
  • ·     Out of school clubs
  • ·     Extracurricular activities
  • ·     Holiday clubs or schemes
  • ·     Activity holidays including Camp Beaumont, PGL and Super camps
  • ·     Qualifying childcare offered by schools

See the HMRC website for more information.