Salary sacrifice hampers child voucher progress

A study by childcare provider Sodexho Pass shows that four-out-of-ten employers think the salary sacrificing effects on pensions and life benefits act as an active deterrent to introducing childcare vouchers. The time and effort it takes to set up a scheme is the second most common complaint, with 30% of employers saying this was why they opted to avoid vouchers. Some one-in-ten respondents said that the savings weren’t big enough for employers. Although the government’s new tax breaks on vouchers come into force this April, 65% of employers still don’t provide vouchers for staff. However, the poll suggests that this is set to change – 98% of employers without a scheme said they intended to introduce one after April. The new savings on tax and National Insurance have made vouchers more tempting, with over nine-out-of-ten organisations saying forthcoming legislation made schemes more attractive as a benefit. When comparing different providers, 13% of employers said cost was the deciding factor. Adherence to legislation was the deal breaker for 12% of organisations, followed by professionalism (11%) and reliability (11%). Half of respondents thought that childcare vouchers were very important to employees. Just 7% of staff said vouchers were not important.

To download Sodexho Pass’ ‘Employers and Childcare’ survey go to uploads/_Employers_and_Childcare_survey.pdf