What are childcare vouchers?

Childcare vouchers are a government initiative to help working parents pay for childcare such as childminders, nurseries and play schemes.

Parents and their employers will benefit from running a childcare voucher scheme:

• Parents save money because childcare vouchers are exempt from tax and National Insurance. The maximum yearly saving is £1,195 per parent, so if both parents take childcare vouchers they can save up to £2,390 a year on childcare costs.

• Employers will pay a lower amount of Employer National Insurance, saving up to £373 for every employee on the scheme.

To implement a childcare voucher scheme, employers simply sign up their organisation and then place an order for their participating employees each pay period.

This website contains everything necessary to implement a childcare voucher scheme, with step-by-step instructions and access to an online voucher ordering system.

To see if you are eligible to take part in a childcare voucher scheme click here.