Childcare Vouchers are a recognised method of paying for registered childcare. They are not just for children of pre-school age; they can be used to pay for childcare for children aged up to 16* years old.

Childcare Vouchers can only be requested by the parent or legal guardian of the child.

There are some instances where working parents may not be eligible to take Childcare Vouchers, or where your entitlement to other benefits may be affected:

Minimum wage
Whilst taking Childcare Vouchers, your employer is required to pay you on or above the national minimum wage.

For your illustrative financial calculation, please contact one of our Customer Service Representatives on 0845 002 1111 for further details.

Higher rate tax-payers
Childcare Vouchers benefit both basic and higher rate tax-payers.

Self-employed
If you are self-employed you are not eligible to take Childcare Vouchers.

Tax credits
If you are currently receiving tax credits, you should contact HM Revenue & Customs to discuss your intention to take Childcare Vouchers.

Should you wish to take Childcare Vouchers, your entitlement to tax credits could be affected where there is a reduction in cash pay.

HM Revenue & Customs have put together a calculator to help you decide whether you would be better off receiving tax credits or, instead, taking Childcare Vouchers. To compare the benefits of tax credits to Childcare Vouchers, simply click here.

Statutory Maternity Pay (SMP)
SMP is calculated based on the average weekly cash pay you receive during the eight week period, 15 weeks prior to the date of confinement (weeks 17 to 25 of your pregnancy). As Childcare Vouchers reduce your cash pay through salary sacrifice, the amount of salary that is liable to National Insurance contributions is also reduced. Therefore any salary sacrifice entered into during this eight week period will reduce entitlement to SMP. As a result you may wish to stop receiving Childcare Vouchers during this period.

The 2008 Sex Discrimination Act can have an impact on maternity pay, occupational maternity pay and paternity pay.

If you fall pregnant whilst receiving Childcare Vouchers, you should contact your HR or payroll department immediately.

*You can use Childcare Vouchers for children up to the age of 15 (until 1st September following their 15th birthday), or 16 if the child is disabled (until 1st September following their 16th birthday).