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Childcare voucher scheme extended

Employers will be able to continue offering childcare vouchers, after the government announced a 6-month extension to the scheme.

The childcare voucher scheme was previously scheduled to close on 5 April 2018, to make way for the government's tax-free childcare scheme.

However, following problems with the rollout of tax-free childcare, childcare vouchers will now remain open to new applicants until an unspecified date in October 2018.

Employees joining a childcare voucher scheme are able to take up to £55 a week through salary sacrifice to cover childcare costs, free of tax or national insurance.

The extension was confirmed by education secretary Damian Hinds in a parliamentary debate on 13 March 2018.

Hinds said:

"I have heard the concerns about the timing, and I can confirm that we will be able to keep the voucher scheme open to new entrants for a further 6 months.

"Tax-free childcare will mean that more people become eligible, regardless of their employer and including the self-employed for the first time."

Talk to us about offering childcare vouchers.