Childcare vouchers
Childcare vouchers closed to new entrants on 4 October 2018. If you were already in a scheme you can stay in it, and for some families they are still worth more than Tax-Free Childcare. If you were not, this is not an option and nothing will change that.
Who can still use them
Only people who joined an employer's scheme on or before 4 October 2018 and have stayed with the same employer without a break of more than 12 months. If you change jobs, you lose them for good.
Providers you may be with: Edenred, Computershare, Sodexo, Pluxee, Care-4. Your login is with them, not with the government.
How they compare with Tax-Free Childcare
Vouchers are salary sacrifice: you give up part of your pay before tax and National Insurance, so a basic-rate taxpayer saves about 32% on up to £243 a month, or around £930 a year. Both parents can claim, so a couple can save roughly £1,860.
Tax-Free Childcare gives 20% on up to £10,000 of childcare per child, so up to £2,000 a year per child.
As a rough rule: vouchers usually win for one child and lower childcare bills; Tax-Free Childcare usually wins for two or more children, or for big bills. Work out both before you switch, because the switch is permanent.
If you switch, you cannot switch back
Applying for Tax-Free Childcare means telling your employer to stop the vouchers within 90 days. Once you leave the voucher scheme you cannot rejoin it. Nobody can, because it is closed.
Questions people ask
What are childcare vouchers?
A salary sacrifice scheme where you give up part of your pay before tax and National Insurance to pay for registered childcare, saving a basic-rate taxpayer around 32% on up to £243 a month.
Can I still get childcare vouchers?
Only if you joined your employer's scheme on or before 4 October 2018 and have not had a break of more than 12 months or changed employer. The scheme is closed to everyone else.
Are childcare vouchers better than Tax-Free Childcare?
It depends. Vouchers tend to be better for one child and moderate childcare costs; Tax-Free Childcare tends to be better for two or more children because the £2,000 cap is per child rather than per parent.