With the advent of the government’s Tax-Free Childcare initiative, the childcare voucher scheme was due to close to new entrants on 6 April 2018. However, ministers announced yesterday (13 March 2018) they are to delay the closure.
Education Secretary Damian Hinds made the concession during a Commons debate. Speaking in Parliament, Mr Hinds said: "I can confirm that we will be able to keep the voucher scheme open for a further six months to new entrants."
Childcare vouchers will now close to new entrants in October 2018, with the actual date yet to be confirmed. Existing users will be able to continue benefitting from the savings provided by childcare vouchers as they always have.
"While childcare vouchers are going to remain open for a little longer, this reprieve is only temporary. Employers should use the current momentum to get as many working parents onto the childcare voucher scheme before the new deadline," said our Managing Director, Voucher Services, Julian Foster.
"Research shows that families with childcare costs under £9,330 a year are likely to be better off with childcare vouchers, tax credits, or a combination of both.
"Parents just need to give themselves a choice - and by registering for childcare vouchers before the new deadline, they will always have the option to switch to Tax-Free Childcare at a later date (if that ends up being the better scheme for them)."