Nursery World - Campaign calls on Government to save childcare vouchers

A new campaign has been launched to save childcare vouchers, with new analysis showing the majority of parents would be better off using vouchers than Tax-Free Childcare.

According to the Childcare Voucher Providers Association (CVPA), at least 90 per cent of families would be better off using childcare vouchers, which will close to new parents on 4 October, or a combination of tax credits and childcare vouchers, than the Government’s Tax-Free Childcare (TFC) scheme. Parents cannot claim tax credits and use TFC at the same time.

The CVPA figures show that two parent families spending the average household expenditure of £3,780 a year on childcare, would be better off using childcare vouchers than Tax-Free Childcare.

For example, a two-parent household with both parents employed and one child, earning the average income before tax of £46,400 and spending the average household expenditure on childcare, would receive £1,206 of support through childcare vouchers compared to £756 with Tax-Free Childcare (TFC).

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