Childcare voucher scheme closure deadline delayed

Read our latest JEL alert below, or at our website https://www.justemploymentlaw.co.uk/news-alerts/5575/childcare-voucher-scheme-closure-deadline-delayed

By Angela Strzyzewska.

The Government has recently confirmed that the closure of the workplace childcare voucher scheme will be delayed until 4 October 2018. The initial closure date of 6 April 2018 has been moved as a result of the high number of complaints received from working parents about the timing of the closure and the transition process to the new tax-free childcare scheme. The intention behind the deferral of the closure date is to allow more time for the Government’s tax free childcare scheme to 'bed in' properly and to increase awareness of the scheme amongst families.

Therefore, as of 4 October 2018, childcare voucher schemes and directly contracted childcare which is part of employer-supported childcare arrangements, will close to new entrants. After the new closure date, parents who are already using childcare vouchers can continue to do so for as long as they remain with their current employer, and if their employer continues to offer the scheme.

The removal of the workplace childcare voucher scheme is to make way for the new tax free childcare scheme, which was introduced from April 2017. The new scheme is intended to provide parents with children under the age of 12 up to £2,000 a year per child to help cover childcare costs.

If you have any questions about the childcare voucher schemes, or you would like support on any other employment law matters arising, please do not hesitate to contact a member of the team on 0141 331 5150.