📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Teachers not getting childcare vouchers discussion

I recently wrote an article on Childcare Vouchers (see Article) which let parents reclaim £1000s a year tax back on childcare costs.

MoneySavers discussing it on the discussion link here have noted state school teachers aren't included in the scheme. This is a bureaucratic oversight and I'm asking MPs to look into it.

What I'm doing:

I have sent an email to 60 MPs who've supported the site in the past at various Early Day Motions, drawing this to their attention.

What you can do?

As many ideas as you have is great. Union members should kick up a fuss to make sure their Union is dealing with it. Also its worth writing or emailing to your MP. I've noted a draft letter below which may make it easier (feel free to copy and amend it, i am NOT asserting copyright on it).


Please reply with further suggestions and discussion
To find who your MP is and their address: http://www.locata.co.uk/commons/

DRAFT LETTER TO MPS:


Dear MP NAME

I am writing as your constituent to draw your attention to the fact that state school teachers are unfairly missing out on £1000s worth of government subsidies.

Thousands of private sector employers now offer childcare voucher schemes, which allow parents to claim £1000s a year tax back on childcare costs. If a couple both applied for the vouchers, which are deducted from workers’ gross salary so avoid tax and national insurance, they could save a massive £1600-£2000 a year.



Yet teachers are denied this cash. They are exempt from the scheme because the national agreement that controls teachers’ pay means local authorities can’t alter teachers’ pay rates – even if it is to accommodate a government salary sacrifice scheme. This is a silly bureaucratic oversight.

It seems extraordinary that in the current climate of staff shortages, teachers are precluded from an incentive that would encourage many to return to work.

I would like you to do all that you can to put pressure on the government to get the rules changed, and find a mechanism through which teachers can get the cash they are entitled to.

Yours sincerely,
Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
«13456

Comments

  • SE9Gull
    SE9Gull Posts: 17 Forumite
    After some prodding by me, my employer (London Borough of Greenwich) is very keen for this scheme to start happening for teachers, so there is some movement in the right direction. Who are the main movers and shakers we teachers can be hassling in order to get some action on this oversight?
  • This is disgraceful.

    My wife is looking to go back to work soon (a teacher) and the only way we can justify it is if we get some money off the childcare costs which are extortionate.

    How can she do anything to get the school involved?
    LBM 12.09.12 - £53K in debt.
    DFD - 11.07.2019 (OMG).
    New DFD is 28.10.2018 due to paying the absolute maximum.

    Thanks to everyone on the DMP forum, and to SC for helping me out of this huge hole.
  • xgirl
    xgirl Posts: 9 Forumite
    Like so many complicated Govt schemes the people who could use it most are the least able to take advantage of it. You have a well paid couple working for large financial organisations in the City for instance and they can both take advantage of it because their employers sort it out for them and cover the cost of setting up the scheme. You have someone on low pay working for a small employer - the cost of setting up the scheme (if it's set up at all) is passed on to the employee.

    Is there any way that the self-employed can take advantage of the scheme? As far as I can see it's impossible.
  • gav1
    gav1 Posts: 10 Forumite
    Those who can, ...... don't get childcare vouchers. Seems like a regressive form of taxation to me. Come on Martin, let's sort this. You and me, baby. And a few of our friends on this site.
  • There is a small point that has not been addressed which is that Childcare providers do not have to take these vouchers from parents if they do not wish to, although there should be no reason that they should refuse. It would be easy to say change Childcare provider, however, we must not loose sight that we trust these people to look after our children - a huge responsibility. It's a pity that it has not been marketed to childcare providers direct rather than relying on the parents to try and persuade them. As you may have gathered we haven't been able to persuade our childcare provider.
  • Anon
    Anon Posts: 14,562 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Another point to consider is if you are in a company pension scheme, contributions (employers and your own) are based on salary - as you have sacrificed some of the salary, some organisations use the lower figure rather than the original as the basis for contributions. I am not sure what difference this makes but would be interested to hear if this should mean not taking part in the scheme or if the benefits overall really outweigh this.

    Many thanks

    Anon
  • adr0ck
    adr0ck Posts: 2,374 Forumite
    Part of the Furniture Combo Breaker
    my partners a teacher..........(state primary school) and shes able to claim the childcare vouchers....she has to sign up for a minimum of 12 months......(shes not been claiming because shes on maternity (new baby girl)) but i know that she was/would be able to claim them......is this because were in wales?
  • leafton
    leafton Posts: 166 Forumite
    I am a teacher in a secondary school currently on maternity leave. I would be paying out £600 per month for full-time childcare during term time and £300 per month during the holidays, had I not had an idea! My sister (also on maternity leave) has decided that she does not want to return to work. However, she and her fiance can not afford to rent anywhere if she does not do so. The result: My husband and I are buying a property on a buy-to-let basis and my sister and her fiance are going to live there rent free in return for taking care of my baby when I return to work. If and when they decide to move out, once her son is at school, the property can be rented out to someone else. We are now paying less than £600 per month and this will go towards a long term investment, rather than a nursery (which I was not keen on). I realise that this type of arrangement will depend on a lot of circumstances, but I just wonder whether others could benefit from doing a similar thing? Perhaps you could buy a property and offer your childminder the opportunity to live there rent free whilst they are taking care of your children?
  • MMCG_2
    MMCG_2 Posts: 280 Forumite
    I am just back to work in September past after having my second child, with an 8 year gap. As you can appreciste things have changed a lot since then. As our little bundle was totally unexpected, we now find childcare costs crippling us. I enquired about the vouchers only to be told they affect my pension. I don't fully understand this, but I have discovered neither do the Dept of Educ here in Northern Ireland nor the employing bodies, ie. CCMS. Perhaps you could help ensure that whenever MPs bring their oversight for review that we in Northern Ireland are included. As you know, One rule for one doesn't necessarily mean the same one for others!!!! Keep up the good work, Martin.
    2p or not 2p? That is the question!
  • djw_2
    djw_2 Posts: 7 Forumite
    I think Scottish teachers are eligible for the scheme - Scottish Borders Council have been publicising the scheme to their state school teachers.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.3K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.4K Mortgages, Homes & Bills
  • 177.1K Life & Family
  • 257.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.