Childcare Vouchers

Childcare vouchers – on the ascendant

Designed to help working parents, childcare voucher schemes have seen a sharp rise in their profile in the benefits arena since vouchers became tax free in April 2005.

Childcare vouchers are an alternate means of paying for childcare. Vouchers are provided by employers to staff and are a simple tangible way in which employers can assist employees with their childcare costs.

Employers of choice have become aware of the importance of adopting family friendly policies to attract and retain staff in what is now a highly competitive job market. Staff loss through soaring childcare costs has become a major issue for industry. Losing a key member of staff can, however, impact more heavily on a smaller organisation.

Recognising the difficulties being faced by employers, the government decided to offer an incentive to encourage employers to help their staff with childcare costs to keep people in the workplace.