The move, based on proposals outlined in the Government's consultation document Employer-supported childcare, published earlier this year, is aimed at making childcare far more affordable for working parents and encouraging them to return to work. It would also make it easier for employers to offer childcare support.
John Woodward, managing director of nursery group Busy Bees, said he expected there to be a boom in childcare vouchers. He said they would make 'a dramatic difference' to parents, day nurseries, other childcarers and employers.
The Government has proposed 50 per week tax exemption for each employee using registered childcare. Mr Woodward said this could mean savings of Pounds 32 a week on childcare costs for basic-rate taxpaying parents with two children at full-time nursery, amounting to savings of around 1,600 a year.
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