Improving Your Family Finances With the Help of Childcare Vouchers

Part of the reality of becoming a new mum is takingwhether it's part of a salary sacrifice scheme
stock of your family's finances and working out how2 Work out how your tax credits will be affected
you will cope financially. When you're considering3 If your cash pay is affected, ask if your other
returning to work, how you will afford to pay forearnings-related payments will be affected (pension,
childcare and what kind of childcare you will chooseovertime rates, pay rises etc.)
are important decisions. Many new parents will not be4 If your cash pay is affected, ask will your
familiar with childcare vouchers, how they work andbenefits-related payments be affected? (will your NI
how they can be used to pay for childcare.contributions to your State Pension be affected etc.)
The childcare voucher scheme is a national scheme5 If your cash pay is affected, ask would any student
offered to parents and guardians through theloan repayments be affected?
government and participating employers to help withChildcare vouchers are redeemable to pay for
the cost of childcare.childcare and child minding ensuring that a parent's
Childcare vouchers are a financially beneficial way toreturn to work need not have a negative impact on
pay for childcare in the UK, because you don't pay taxtheir family finances.
or National Insurance on childcare vouchers to theParents can also be assured when selecting a
value of £55 a week. This means that workingchildcare provider that they have undergone rigorous
parents can save as much as £1,195* a year byvetting procedures. Before childcare vouchers can be
paying for childcare with vouchers. The savings couldused to pay providers the provider must be registered
be double, if both parents sign up for a childcarewith an approved regulatory body and will need to
voucher scheme.meet the standards set out by that body. Ensuring only
The website Money for Mums has put together aregistered providers can accept vouchers for
good check list of information on childcare vouchers [1]:payment offers additional peace of mind to mums
1 Check whether your employer's childcare vouchersknowing that their child is being looked after in a safe
are a benefit that is paid on top of your normal pay orfriendly environment.