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Save Help from employers: Childcare costs
Large local employers like the NHS and LAs can be encouraged to help with childcare costs. From April 2005, the Government plans to reform the existing tax and National Insurance (NI) exemptions to support the National childcare strategy.
The changes from 2005 focus on employer-supported childcare, for example workplace nurseries and childcare vouchers and provide a better incentive for employers to support the provision of childcare for employees.
Childcare vouchers
Childcare vouchers are a way of paying for childcare, usually with a paper voucher redeemable by the childcare provider. Childcare vouchers are usually administered by a voucher provider for an administration fee.
Childcare subsidies
This is an amount paid to a childcare provider to subsidise the cost of staff care. An example would be a £5 a day subsidy for a holiday playscheme.
Workplace provision
Workplace, or in-house provision, is where the employer is wholly or partly responsible for financing and managing the provision; or when the care provided is on premises, which are made available solely by the employer. In practice this means either a workplace nursery or an in-house or on-site holiday playscheme. A contractor may run the scheme as long as it fits the above criteria.
Full information can be found in the Childcare section of the Inland Revenue website.
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Last updated on 14/04/2009
