Employee benefits: Involve employers in childcare vouchers

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Childcare voucher providers have asked government to ensure employers are part of the new tax-free childcare scheme.

The call came as the coalition published its consultation exploring how the scheme will operate and asking employers what they could do to support it.

Research from the Childcare Voucher Providers Association (CVPA) revealed that two-thirds of employers it surveyed would be likely to continue offering childcare vouchers even if the National Insurance Contribution saving was removed.

The Department for Education has already confirmed that the present voucher scheme will close to new entrants once the new one is introduced and it is expected to be phased out after that.

The CVPA said it welcomed the consultation which revealed the level of detail of the government's thinking and highlighted the complexity of the new scheme.

It said: "The consultation document highlights that there are many details yet to be worked out. One area the CVPA will be seeking clarification on is the employer role in the promotion and administration of the scheme.

"We are pleased that government has recognised the importance of the employer in the current childcare voucher scheme. CVPA research shows that 97% of employers say being able to help their staff with childcare costs is a key consideration in their decision to offer vouchers.

"Because of this, some two-thirds of employers say they would be likely to continue to offer childcare vouchers even if the incentive of the National Insurance Contribution savings was removed. Therefore, we look forward to working with government to ensure employers maintain a role in tax-free childcare and believe this is vital to the proposed scheme's success."

However, as WSB reported, a survey by Jelf of attendees at one of its employment seminars found that a third of employers were considering ending their workplace childcare voucher scheme early.

CVPA spokesman Paul Bartlett added: "The government's plans to build on the current scheme and extend it to the self-employed are most welcome. This group, who make up such an important part of the economy, will finally have access to the same level of support as everyone else.

"The role of the employer in the current childcare voucher scheme has been a fundamental reason for its success. Ensuring there is a link between the new scheme and employers will help build on this success, and guarantee employers can still play an important role in helping their staff with their childcare costs."

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