DOD’s blog: Childcare vouchers under scrutiny

In recent weeks there has been a flurry of press releases about childcare vouchers landing in my inbox.

The reason is clear.

We are just about two years away from the proposed workplace tax and national insurance savings on these highly popular perks being removed (for new schemes). Although that could still change, given that the consultation on these changes closes on 14 October.

When I say popular, I am not referring to volume because the vouchers are restricted to parents of children, so only a minority of employees tend to take them up. Instead, I am referring to how pleased these working parents are to have them, and also to the vast number of employers that offer them.

The government has decided that there are other, and in their opinion, better ways to support parents with childcare costs.

But I strongly believe that employers should still play a crucial role in facilitating childcare vouchers.

If my various press releases are to be believed, then the government is increasingly realising that workplaces are crucial distribution grounds for these vouchers. I couldn’t agree more.

Workplaces are the government’s route to employees, be it for pensions or childcare vouchers.

If you, too, have opinions on this topic, then get your feedback to the government consultation.


Debi O’Donovan
Employee Benefits

Twitter: @DebiODonovan