Popularity of childcare vouchers grows as parents count the tax savings
June Barber, 05 February 2010
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The number of working parents using childcare vouchers in the UK is growing, according to research by the Social Market Foundation.
In 2007, the number of parents using childcare vouchers In the UK was 190,000. That figure is believed to have grown to more than 340,000 today.
Other figures, released by childcare voucher provider Computershare Voucher Services, show how vouchers enable working parents to make significant savings on the cost of their childcare. In 2009, parents using its scheme saved £84 million through tax. This is an increase of 24% on 2008, when £71 million was saved. In 2007 parents saved £56 million. Working parents make these savings by opting to receive up to £243 of their pay each month in vouchers before income tax and National Insurance is deducted.
Employers also enjoy savings. In 2009, according to Computershare, employers using its scheme claimed tax relief of £24 million, a 14% increase on 2008, when £21 million was saved. In 2007, employers claimed tax relief of £16 million.
Simon Moore, managing director of Computershare Voucher Services, said: "The childcare voucher scheme is a win-win for employers and working parents and these figures illustrate clearly how they are becoming ever more popular.
"The Government's decision not to remove the tax relief available on childcare vouchers means that the opportunity remains for people to use the scheme."
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