Following yesterday’s Budget announcement regarding childcare funding in the UK, we want to reassure working parents that are currently participating in an ‘employer supported childcare’ (ESC) voucher scheme that changes will not be introduced until the end of 2015 and only then will there be a gradual phasing out of the existing scheme.
Existing members of an ESC voucher scheme will be able to choose whether they continue to receive their current childcare vouchers or switch to the new scheme in Autumn 2015. This is a great position to be in – parents can simply select the scheme that is more financially beneficial.
For more information about the new system that will be launching in Autumn 2015 take a look at this helpful diagram from the Treasury.
Remember, there are benefits to ‘employer supported childcare’:
- They are available now (the new scheme doesn’t come into effect until 2015).
- Some parents may be better off with the existing childcare voucher system. Those parents can still continue to take childcare vouchers over the new scheme until it is completely phased in.
- The existing childcare vouchers can be used to pay for registered childcare until a child is 15, (the new scheme will only be available to pay for childcare up until a child is 5 years old initially).
- The existing childcare vouchers are available to families where only 1 parent works, (the new scheme requires both parents to be working).
- The current vouchers are available to higher earning working parents, (the new scheme is not available to parents earning over £150,000).