More than a third (36%) of respondents that currently offer a childcare voucher scheme are considering scrapping it before the new system is finalised or available, according to research by Jelf Employee Benefits.
The research, which questioned 124 organisations, follows the government’s proposal to introduce a new childcare voucher system, which was announced in the Budget 2013 and passed in the Queen’s speech 2013.
The system, which will take effect from autumn 2015, will see the government provide working families with 20% of their childcare costs, up to £1,200 initially for each child up to five years of age and eventually for children under 12 years of age by about 2020.
From 2015, employers will also no longer be responsible for providing staff with childcare vouchers,
Steve Herbert, head of benefits strategy at Jelf Employee Benefits, said: “With more than two years before the proposed replacement scheme is available, it’s difficult to see why employers would want to remove their childcare voucher offering earlier.
“If employers remove this benefit now, they risk losing key employees, and disengaging many others.”