As many of you will know the Government has agreed to a six month extension of the childcare voucher benefit scheme. Previously, the Government had announced that from April 6th 2018, childcare voucher schemes will be closed to new applicants.
The new cut off date will be 5th October 2018, but it is not set in stone and may likely change again, as it is yet to be formally confirmed by HMRC.
This is good news for any parents wanting to sign up to your existing scheme over the next 6-months. In addition, after the 5th October deadline, your employees can keep getting their vouchers if they:
- Joined and received their first voucher before the deadline
- Stay with the same employer and that employer continues to run the scheme
- Don't take an unpaid career break of more than a year
Whilst it does not solve the longer-term issue around the ever growing cost of childcare in the UK, this is a short-term positive and gives employers the opportunity to encourage their staff to sign up to an additional benefit before it is too late.