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.

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.

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 worked out based on the average weekly pay you receive during the eight-week period, 15 weeks before your date of confinement (weeks 17 to 25 of your pregnancy).

As childcare vouchers reduce your pay because of the salary sacrifice, the amount of salary that you pay National Insurance contributions on is also reduced. As a result, any salary sacrifice you enter into during this eight-week period will reduce your entitlement to SMP.

The Sex Discrimination Act (SDA) 2008 can affect maternity pay, occupational maternity pay and paternity pay. If you fall pregnant while receiving childcare vouchers, you should contact your HR or payroll department immediately.

^1st September following 15th birthday or 1st September following 16th birthday for children who are registered disabled.