Working parents across the UK will be delighted to hear that the Government has agreed to a six-month extension of the Childcare Voucher scheme.
It has been estimated that around 80 per cent of working parents may be better off using Childcare Vouchers rather than the new Tax-free Childcare scheme.
The voucher scheme allows employees to gain access to funding for childcare through their employer and in return employers can save up to £402 per year in National Insurance Contributions for every employee who signs up.
Following a number of debates in Parliament, the Secretary of State for Education, Damian Hinds, confirmed that the Government has agreed to a six-month extension of the Childcare Voucher scheme. Therefore the scheme will not be closing in April as previously reported.
The Government’s extension to the popular scheme was announced following criticism, which claimed that the Tax-free Childcare scheme is poorly understood and its rollout has been botched.
If employees are unsure of which option is better for them they can visit the Government’s Childcare Choices at www.childcarechoices.gov.uk  
For more information about our payroll services, please contact us.