Many parents around the country have been using government childcare vouchers. These vouchers help make childcare more affordable and will save parents thousands of pounds every year. The system that is in place right now is coming to a close because there is a new childcare voucher scheme being put in place. This new childcare voucher scheme started rolling out in April 2017 to streamline the system.
There are parents who are worried about the changes to childcare vouchers that have come into effect and the childcare vouchers scheme ending. This is why we have created this guide. Here are a few important facts that you need to know about the changes to childcare vouchers 2018.
How Does the Currently Used System Work?
The current voucher system is available to parents with children who are up to 15 years old. It is offered by many employers, and it requires that you give up some of your salary. The amount you are required to pay will depend on your income, but the basic rate for taxpayers is up to £243 for childcare vouchers per month. This works out to be roughly £55 a week. Each parent can receive vouchers, so 2 working parents can receive up to £468. This is very important for many parents since this new childcare voucher scheme ends in 2018.
How Does the New Childcare Voucher Scheme Work?
The new childcare voucher scheme was originally discussed in March 2014 during the budget week. It was designed to replace the current voucher system. However, the rollout dates have changed to April 2017, so the new cut-off date is April 2018.
This system was designed to help parents cut their childcare costs in a new way. The new childcare voucher scheme will give eligible families up to 20 percent more of their costs for childcare.
It is still not 100 percent sure how the system is going to work for every family. However, we do know that for every 80p a family pays in, the state will give 20p, which gives most families tax back on what they pay. The total that a family can claim is up to £10,000 per child every year. This would be a £2,000 return per year, or it doubles to £4,000 if the child is disabled.
How Is This Going to Affect Child Care Providers?
Child care providers are still expected to accept child care vouchers. With the new system, parents are going to receive vouchers that they can pay for their child care with. The amount that they can claim has changed with the new system, which will make it easier for parents to pay their child care, providers. The system does not affect childcare providers at this time, but it could do so in the near future.
This new childcare voucher scheme is designed to make the process to apply for tax-free childcare benefits easier. The scheme has already started to rollout, so we are starting to see the effects of the changes to childcare vouchers.