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

New and updated