Childcare vouchers

Jo Jacobs 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).

In the March 2013 Budget, the Chancellor announced that childcare vouchers would be replaced by a new tax-free childcare scheme, which will be introduced from early 2017. The ongoing role of employers in supporting employees' childcare costs is therefore now uncertain.

Jo Jacobs, HR practice editor

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