Childcare vouchers

Sheila Attwood Editor's message: Since 2009, childcare vouchers have been recorded as one of the most common employer-provided benefits by XpertHR's benefits and allowances research. Employees purchase the vouchers from their gross salary - known as a salary-sacrifice arrangement - resulting in tax and national insurance savings (and national insurance savings for their employer).

A new Government-funded tax-free childcare scheme was launched in April 2017, and is rolled out over 2017, with parents of the youngest children qualifying first. The scheme will operate through online accounts, with no employer involvement. The ongoing role of employers in supporting employees' childcare costs is therefore now uncertain.

Sheila Attwood, managing editor, pay and HR practice

New and updated