This saves each parent up to 1,196 a year in tax and nationalinsurance, helping to increase the demand for registered childcare andproviding a welcome boost to the childcare sector.
The Government recently announced plans to phase out tax relief onchildcare vouchers, with the scheme being closed to new members fromApril 2011. Parents who sign up before then will be able to continueordering tax-free childcare vouchers until April 2015.
The Government plans to replace the current voucher scheme with freechildcare for disadvantaged two-year-olds. This will probably take theform of ten hours a week of childcare during term time. Althoughchildcare vouchers will be phased out across England, Scotland, NorthernIreland and Wales, the proposed free care will only apply toEngland.
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