Childcare vouchers offer a cost effective way in which employers are able to assist their staff with payment for childcare. The salary sacrifice scheme, where payment for childcare vouchers are deducted through the wage packet, is a practical means of demonstrating work-life balance practice to employees and providing actual cost benefits to both employer and employee on National Insurance Contributions.

How does it work?

Employer agreements -The employer makes an agreement with one of the Childcare Voucher companies, some of which are identified at the bottom of the fact sheet.

Benefits to Employers

• Part of a company's work-life balance programme to enable parents to manage their work and home commitments
• Vouchers are at no cost to the employer as increased administration is offset by their reduction in Employers’ National Insurance Contributions
• Support and assistance from the voucher company with publicity and payroll

Benefits to Parents

• Maximum savings on childcare costs through the pay packet
• Savings of up to 11% on childcare costs
• Easy to use
• Childcare costs stopped directly from salary – guaranteeing payment
• Effectively managing/budgeting for childcare costs

Voucher companies

• Accor Services
• Busy Bees
• Sodexho Pass
• Faircare
• Virtual Vouchers
• Imagine Co-operative Childcare

Please note that this is not an exhaustive list. There may be other companies offering childcare vouchers.

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