The system of Childcare Vouchers was introduced so that there was a mechanism in place to ensure that the money generated through the scheme, was being directed correctly to the childcarers.
Child care costs are variable. If you have a young child in a nursery, or looked after by a childminder or nanny, it is relatively easy to predict the cost over a twelve-month period. If, however, your children are of school age and require occasional before or after school care or care during the holidays, your costs may vary dramatically from one month to the next. The child care voucher scheme allows you to sacrifice differing amounts so that you can cover your child care costs as and when they occur.
When an employer sets up a child care voucher system, they can stipulate how often you can change the amount you choose to sacrifice from your salary in return for the vouchers. As the system is designed to be flexible, employers are unlikely to want to tie you in for a long period of time, although they may want you to sign up for 6 months at a time. This can still be flexible, though, as the vouchers are usually valid for up to 12 months, so you can always save vouchers up for the more expensive care during the holidays, or additional care if you have to work extra hours unexpectedly.
As a parent, you will know that flexibility is crucial. Being able to control the types and amount of child care you use makes your working life easier. Many companies are beginning to realise that offering employees flexible working conditions and benefits are motivating factors and that those employees who feel in control of both their working and private lives are more productive and more likely to stay with the company rather than move on. This is one of the reasons that the child care voucher system has proved so popular with companies; it not only saves them money on National Insurance contributions, it also provides a key recruitment and retention benefit.
To find out more about how the child care voucher system could benefit you, speak to Fennies. We have been running great day care facilities for nearly 15 years and also provide administration services to companies who want to set up a voucher scheme.
The introduction of childcare vouchers provides a genuine cash saving for working parents, and Fennies Vouchers would like to ensure that the experience of using childcare vouchers is quick and simple, and does not add an unnecessary administrative burden to the already busy lives of the working family.
