Childcare vouchers and furlough

LlanaLlandsberg

There isn’t much info available online about this. Can an employer deduct the cost of childcare vouchers from post-salary sacrifice furlough pay? 

Mrsn

I believe so yes as they are a prearranged deduction. You would need to speak to the voucher company if you wanted to stop the payments.

LlanaLlandsberg

Thanks. Where does this info come from? I’ve seen info online to the contrary. 

sharpe106

All it says is that employers can't include it in the money they claim back. So no reason why they can't deduct it as normal if you still want it. 

LlanaLlandsberg

They’re working out the furlough pay after the salary sacrifice so that isn’t being paid to start with. Eg normal salary £1000, childcare vouchers £250 = £750. Furlough is 80% of £750 so how can £250 be deducted off this for a benefit that isn’t received? 

sharpe106

what does your contract say about it? if the benefit is not received? 

LlanaLlandsberg

Sorry I’m not following - what contract? 

sharpe106

Work contract or your agreement for salary sacrifice. Or what ever you have in place to cover the reduction taken from you. 

LlanaLlandsberg

This from widerplan.com: ‘the entirety of the grant received by the employer to cover an employee’s subsidised furlough pay must be paid to them in the form of money. No part of the grant should be netted off to pay for the provision of benefits or a salary sacrifice scheme. If the employee is in receipt of salary sacrifice benefits, these benefits should be in addition to the wages provided under the terms of furlough.’ Can anyone confirm this? 

LlanaLlandsberg

Sharpe106 no contract covers this salary sacrifice 

sharpe106

What agreement did you have when you started the salary sacrifice? i.e how did it start.