Childcare vouchers are an employee benefit for all eligible working parents.
They're a Government-approved, tax-efficient way of paying for childcare. If you join the scheme, you can exchange up to £243 a month (£55 a week) of your gross salary for childcare vouchers.
The part of your gross salary you exchange for childcare vouchers is tax-free and exempt from National Insurance contributions (NI). Because of this, you can make savings of up to £933 a parent, a year.
All registered childcare providers can accept childcare vouchers as a method of payment, including the following:
- Au pairs
- Out-of-school clubs
- Extra-curricular activities (such as music lessons)
- Breakfast and after-school clubs
- Holiday clubs or schemes
- Activity holiday companies
- Qualifying childcare offered by schools.
Read more about childcare vouchers on the GOV.UK website.