Childcare Vouchers: cut childcare costs by £1,000/year Discussion Area

minnie123

palomino2424 wrote: »

Hi all

My company uses Voucher Solutions Limited - I have found them to be extremely helpful - I think they are a smaller company than some of the others that have been mentioned in the past on this forum and maybe that's why I feel like I get a personal service - anyways re. maternity leave as I have already asked my employer this, you never know when you may need it(!) - they called up Voucher Solutions and advised my company that the employee taking the vouchers needs to opt out of the childcare voucher scheme about 15 weeks before due date of baby - otherwise my company would potentially have to pay me for the vouchers, thus costing them money. I would much rather my company had a scheme and that I opted out before my baby was due - than not having a scheme at all - as that doesn't seem fair to me. I think in October last year new EU maternity rules came into effect which means that if an employee has childcare vouchers and leaves to have another baby the company may potentially be liable to pay for the childcare vouchers during the maternity leave period - companies don't want to do this as it will cost them money as at the moment the scheme doesn't cost them any money at all? Not sure if I am 100% correct though I think that's how it works.

Yes that is why my company won't offer the childcare vouchers just because of the maternity leave thing. I guess they can't by law make you opt out so they are taking a risk and they don't want to. I hope they change the scheme my employers would happily do it then. can't believe I will be getting no help whatsoever seems very unfair.

up2mischief

I have been receiving chilcare vouchers for the past few years. I'm now pregnant again and my employer advised me to opt out of the scheme prior to maternity leave. However, a friend advised me of the new legislation that came into effect last November so I explained to my employer why I therefore wanted to remain in the scheme. Once they discovered it would cost them money, they decided to withdraw from the scheme altogether. In order not to discriminate against me, they have decided to cancel their participation in the scheme for all employees. I feel awful now as it doesn't just affect me but lots of others too. Life is not fair!

minnie123

It seems this may be making a lot of employers opt out of the scheme or not join it. Does anyone know how we can go about letting them know since they changed the scheme it is scaring employers off. Maybe they could change it back so you don't get the help whilst on maternity leave.

excited_money_saver

Sorry if I have missed this posted earlier, however your local Families Information Service should be able to help with lots of these questions.
To find out where your nearest is go to
http://www.nafis.co.uk/index.php?option=com_comprofiler&task=userslist&listid=2&Itemid=73.

I must declare an interest in that I work for my local Families Information Service (FIs) and would be willing to try to help anyone who lives in my area, as I am sure all other FIS officers would do. Our main aim is to reduce child poverty, we also have loads of other information about activities, advise and guidance about childcare choices and parenting issues, yoiu can ask us anything.

Each local authority (LA) must have a FIS by law, although some are run by the LA others are run by charities, but there will be one in some shape or form.

Hope this helps someone.

tilla66

Hi I am still confused after looking through a lot of information on this. between my husband and I our household income is £47000, we are both working 35 and 37 hours a week and receive a small amount of child tax credit for our 3 children.

I am trying to decide if vouchers are better than the childcare element of tax credits but somewhere i have read you can only get the vouchers if you are on Working tax credit ,which my understanding is 16 hours on a lower income than that of our household so we do not get this but then I'm also sure I read that you could use vouchers if you were just in receipt of child tax credit?

Can anyone clarify for me ? thanks

kashbakkate

Hi,
My husband is a postman and earns under £19k pa. he can buy busy bees vouchers. I am not currently working and am at home expecting our 3rd child. We are eligable for child tax credit but not working tax credit and so also not the childcare element, as I am not also working. As my husband earns under £19k from your warning about child care vouchers I'm not clear on weather this applies to families like ours who don't receive child CARE element of tax credit anyway. I think we are still better off with the vouchers but am not sure?

Spendless

tilla66 wrote: »

Hi I am still confused after looking through a lot of information on this. between my husband and I our household income is £47000, we are both working 35 and 37 hours a week and receive a small amount of child tax credit for our 3 children.

I am trying to decide if vouchers are better than the childcare element of tax credits but somewhere i have read you can only get the vouchers if you are on Working tax credit ,which my understanding is 16 hours on a lower income than that of our household so we do not get this but then I'm also sure I read that you could use vouchers if you were just in receipt of child tax credit?

Can anyone clarify for me ? thanks

You can get the childcare vouchers if you only receive CTC (we did) or even if you don't receive anything tax credit wise.

Are you getting anything towards childcare costs via tax credits? If you are I'm guessing that you must have high childcare costs due to your income level.

miaoww

Hope you guys can help me decide on my best option

I now have to find some nursery care for my daughter she's going to go to nursery two afternoons a week costing £31
I can have child care vouchers from work or can claim some costs via tax credits tax credits allegidly pay £17 a week so I would have to find £14 but does anyone know how the child care voucher work and how to work out which is the best option / how much does child care vouchers cover?
salary is £18,500 per annum
Thanks

rocky_robin

Not sure whether this has already been posted but this could all become academic if Labour are re-elected.

They propose to stop employers setting up the schemes from 2011 and stopping the salary sacrifice altogether from 2015, on the grounds that too many higher tax payers are benefitting from the scheme.

They propose to use the money to provide 10 hours free childcare to parents with a 2 year old child, if the family are on “low income”.

This seems to ignore the loss of tax revenue from families who currently have 2 parents working, who may no longer be able to afford to do so.

Current government proposals will lead to my family losing 2 lots of childcare vouchers circa £1800 plus our Tax Credits which equate to around £800 per year and we’ll have to look at whether our £220 per week per year childcare bill is worth it, or whether one of us should go part-time or give up work altogether.

Further details can be found via one of the providers (BusyBees)

GORDON BROWN IS GOING TO SCRAP CHILDCARE VOUCHERS

With over 350,000 working parents around the UK using vouchers, scrapping them will affect many families.

WE'D LIKE YOUR SUPPORT FOR OUR CAMPAIGN TO KEEP VOUCHERS - YOU CAN:
Sign the Downing Street petition
http://petitions.number10.gov.uk/keepvouchers/

Visit our blog and leave a comment
http://www.vouchersblog.co.uk/

If you wish to record a comment we can use on our audio map email us at
CustomerServices@busybeesvouchers.com
with your name and telephone number and we will call you back

Follow us on Twitter
http://twitter.com/SimonSays_CVS

Let us know if you’d be willing to give a comment to the media
[EMAIL="savechildcarevouchers@computershare.co.uk"]savechildcarevouchers@computershare.co.uk[/EMAIL]

Hellyk

Hello everyone,

I am wondering what the effects of doing the childcare vouchers are on your state and private pension? Sorry if this has been asked before.

If your employer and you are not paying as much NI then presumably that means something? Also, if you have sacrificed some of your salary does that have any implications on your company pension? I can't believe that it doesnt as you and your employer will be paying amounts based on a lower salary won't you?

Can anyone clarify this?
Many thanks
Helen