Benefits of childcare vouchers
Questions answered on this page:
Why should I introduce a childcare voucher scheme into my organisation?
Why Childcare Choice?
Why Sodexho Pass?
How does this scheme save money?
What are the savings?
Why should I introduce a childcare voucher scheme into my organisation?
· Employer NI savings of up to £373 per employee per year
· Brings genuine financial benefit to employees – saving up to £1,195 per year
· Helps employees budget for childcare
· Cost neutral to implement
· An excellent way to recruit and retain staff
· A simple scheme to implement
· A flexible scheme which can suit your organisational needs.
Why Childcare Choice?
Childcare Choice is a voucher scheme which offers you the opportunity to enhance your employees’ benefits and meet your organisational needs, with Sodexho Pass providing a simple guide through the whole process from set up to management. What makes Childcare Choice different is that we have designed it around the needs of employers who need a scheme which is simple and quick to set up, while also offering the support and advice to make the scheme a success. Offered solely over the Internet, Childcare Choice enables the busy employer to implement a scheme easily and to benefit from the Employer National Insurance savings.
Why Sodexho Pass?
Sodexho Pass is a voucher expert with 30 years experience in 27 countries worldwide. The company issues approximately 1.3 billion vouchers each year to over 293,000 clients using systems designed to prevent forgery or misuse. Sodexho Pass recognises that the help and advice we offer needs to be accurate and timely. We ensure our childcare voucher scheme adheres to all HM Revenue & Customs guidelines.
How does this scheme save money?
By offering childcare vouchers through a salary sacrifice or benefit in kind scheme, you save on Employer NI up to a cap of £55 per week per employee. The amount you save depends on your employees’ pension status, e.g. if contracted out of S2P (formerly SERPS) you save 9.3% and if contracted in you save 12.8%.Savings will still be made after payment of the management fee which could be ploughed back into other family friendly policies. As well as the financial savings, employers should also be aware of the potential savings to be made in terms of staff retention, as 11% of employees leave in order to have or look after children*. With the cost of recruiting a new employee being as much as £4,625*, it pays to look after your existing staff. Running a childcare voucher scheme also sends out a positive PR message to the rest of the business community.
* Source: CIPD Recruitment, Retention and Turnover Survey, June 2005
What are the savings?
The amount you save depends on the rate of Employer NI that you pay. You can save up to £373 per employee per year assuming an NI rate of 12.8% and the employee takes the full allowance of £2,916 per year. At an NI rate of 9.3% these savings would be £271 per employee.