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

blueincubus

Hi, I'm quite new to childcare vouchers having only started last summer. Does anyone know if the £243 per month limit increases with inflation or is it fixed?

rpc

blueincubus wrote: »

Hi, I'm quite new to childcare vouchers having only started last summer. Does anyone know if the £243 per month limit increases with inflation or is it fixed?

Very little the government sets increases by inflation unless the budget explicitly makes it so.

The £243 has been fixed for a number of years, quite possibly since inception. It's been the same for the 5 years I have been doing vouchers.

blueincubus

OK, thanks and I guess with the schemes being wrapped up there's no change of that changing now. Thanks for confirming!

PandoraTC

In relation to being able to apply for childcare vouchers once you have a child, how does this work on statutory maternity leave? My employer offers a voucher scheme but has refused to offer it to me until I am off maternity leave, essentially a year after my child is born.

sheramber

I f you were in the scheme before going on maternity leave then you are entitled to continue to receive them

http://vouchers.employersforchildcare.org/media/Childcare%20vouchers%20during%20maternity%20leave%20%28parents%29.pdf

rpc

PandoraTC wrote: »

My employer offers a voucher scheme but has refused to offer it to me until I am off maternity leave, essentially a year after my child is born.

Perfectly normal (and allowed).

What they can't do is kick you off the scheme once you start maternity. Not changing your contract of employment while you are on leave (which is what they are doing) is perfectly acceptable.

siancobrien

Hi all - I am a bit confused as to which is better, I have the option to do Workplace Nursery salary sacrifice, or childcare vouchers...has anyone ever been in a similar position? If only there were a workplace nursery calculator, like there is for childcare vouchers vs the new scheme!

Mupette

So yes there is a new scheme coming in but not yet. The government one TFC wasn't a well thought plan, they were taken to court, and so the decision to postpone was made.

One thing every parent must make their mind up about is this, once TFC comes in and you don't have an active scheme that you pay into each month (Don't confuse this with well i have an account i just don't pay in to it right now, so this doesn't apply to me right? WRONG)

If you have a childcare voucher account right now, but not salary sacrificing then you could miss out, the option could be just pay the minimum £20 per month (some allow £10) Don't worry you can still save it up and spend later once its in your account its yours.

When TFC comes in and you use childcare vouchers you can change to TFC, IF you have an account with a childcare voucher company but not really use it when TFC comes in, you will not be allowed to use it to salary sacrifice that's it gone, BUT any vouchers already in your account are still yours to spend, that is safe. You just will not be able to (re)join your employers scheme.

Better to keep your account active with minimum payments and decide when TFC is here the government haven't got a clue with this and the rules will change but this one is set they made the rules of the above and they don't look like they are backing down.

LianeB

Hi, we have been claiming childcare vouchers for the last 2 years at £243 my husband has a new role in his company which may push him into the higher tax rate (with overtime).
He may just stay in the 20% tax rate we won't know until Jan/Feb, can we keep claiming at this amounts just in case we stay within the limit?
Or should/can we reduce them at a later stage?

Thanks for any advice

Tiggerwendy_2

Our 3.5 year old was going to nursery and I am signed up to buying £243 child care vouchers. My husband also works but his employer doesn't have a voucher scheme.
Our childcare needs have changed and currently we only need about £80 a month, though from next July I will do, though probably on average £150 a month.
Given the change coming, should I cancel all payments for now (I already have a balance built up in there from the last couple of months) or reduce it down to really low?
Thanks