Frequently Asked Questions

What are childcare vouchers and how will they benefit me? 

The childcare voucher scheme was set up by Government in 2005 to help working parents save money on their childcare. Parents sign up to the scheme through their employer exchanging part of their salary for childcare vouchers known as a salary sacrifice. As childcare vouchers are exempt from Tax and National Insurance this can make you a saving of up to £933 per year depending on the rate of tax you pay. 

If I move to a new employer can I remain in the scheme? 

If you move to a new employer you will be treated as a new entrant, therefore you will no longer be entitled to receive Childcare Vouchers through your new employer, however you will still be able to use any Childcare Vouchers that are in your account to pay for registered childcare. If you have a balance of Childcare Vouchers when you are leaving your employer, it is your responsibility to check with your employer if these can be returned to you through your payroll. 

What effect will receiving childcare vouchers have on my pension or other benefits? 

As long as you pay the minimum requirement for National Insurance contributions, using childcare vouchers should not affect your basis State Pension. However, there may be a small reduction in your Second State Pension. Contact your tax office for more information. 

Can I continue to get Childcare Vouchers while I am on maternity leave/pay? 

Your employer is not allowed to deduct Childcare Vouchers from your Statutory Maternity Pay (SMP). However, if you can make a salary sacrifice from your salary over and above Statutory Maternity Pay, for example, company maternity pay, Keeping In Touch (KIT) day or holiday pay, you can continue to receive Childcare Vouchers  

If you have no earnings over and above SMP your Childcare Vouchers will stop, however you will still be considered to be a member of the Scheme provided you have made at least one payment into your account in any consecutive 52 week period. 

I am expecting another baby - will I be able to continue to use Childcare Vouchers? 

Yes, as long as you remain eligible (see above). However, the maximum amount you can pay into Childcare Vouchers from your salary remains £243 per parent, per month, no matter how many children you have.  

If I stop claiming Childcare Vouchers for a period of time - can I claim them in the future? 

If you need to take a break from using Childcare Vouchers for example, for a career break or maternity/paternity leave, you will still remain a registered user of Childcare Vouchers as long as you: 

1. Make at least 1 salary sacrifice payment into your Childcare Voucher account in each 52 week period (payment must reach your account with 52 weeks) 

2. Do not join Tax-Free Childcare 

3. Do not change employer. 

When using childcare vouchers, am I restricted in the type of childcare I can use? 

For your childcare provider to receive vouchers, they must be registered with Ofsted or the equivalent authority for Scotland, Wales or Northern Ireland. Your childcare provider should have their Ofsted certificate visible within their place of work. If you would like to check, use the Ofsted website. Childcare provided in the child's own home will not qualify if the person approved to give that childcare is a relative of the child. Relative means a parent, grandparent, aunt or uncle, brother or sister (whether by blood, half blood, marriage or affinity), and includes step parents. Please note that it is your responsibility to inform Linking Up and your employer of any changes to your childcare provision including changes to registration or approval status. 

Does my chosen childcare provider have to do anything to receive Linking Up vouchers from me? 

All your childcare provider has to do is register, at no cost, with Linking Up. Most childcare providers are happy to do this due to the benefit of receiving regular and direct payments. The registration form will ask the childcare provider for their bank details and due to the requirement for Linking Up to ensure all childcare providers you use are registered with Ofsted/equivalent authority or have approved status, they may be asked to provide a copy of their inspection certificate. 

My employer is being bought over, can I continue to get Childcare Vouchers? 

Yes, where there is a business takeover or merger employees are protected under Transfer of Undertakings (Protection of Employment) – TUPE - or COSOP regulations. These employees will not be treated as new joiners to the scheme. If the new employer does not offer the Childcare Voucher scheme they can start to do so however it will only be open to those eligible employees who were in the scheme prior to 4 October 2018 and are protected under TUPE or COSOP regulations. 

I opened a Tax-Free Childcare account, can I now re-join the Childcare Voucher scheme? 

No, if you have paid into a Tax-Free Childcare Account you can’t re-join your employer’s Childcare Voucher scheme as you can only benefit from one scheme at a time. 

What if I can’t use all the vouchers I accrued in my account?  

As per Term and Conditions of the scheme purchasing more vouchers than you are able to spend does not qualify for a refund. Vouchers remain available to spend until the term after the child turns 15 (16 if they have a disability) and once expired they can no longer be accessed. We suggest you ensure the amount you sacrifice suits your childcare needs. For further details please find here a copy of our Terms & Conditions.

What help is available if I can no longer pay into the childcare voucher scheme?  

Based on personal circumstances, different options might apply. Please visit Homepage | Childcare Choices to find the best solution for your family.