Opinion: To the Point - Making vouchers work
Tuesday, April 28, 2009
In the first of her new monthly columns, Purnima Tanuku expresses concerns about childcare vouchers.
There is no doubt that childcare vouchers are a boon for families. However, the sheer number of voucher companies means they may not be seen as such a benefit for childcare providers, despite the 'guaranteed' income they offer.
Nurseries might be dealing with many different companies and as many different redemption systems. Some are very good, offering fast payments and easy ways to submit vouchers. Others leave providers waiting a number of weeks for money or have processes that make it hard to match payments with children, meaning nurseries have to find time to resolve problems or even pay for extra administrative support.
Childcare settings agree that in principle, vouchers are a benefit. But they do want some consistency in the system and monies to be received within a reasonable timescale.
We were pleased to see that three of the largest childcare voucher companies have come together to ask childcare settings for their views to inform the development of a Code of Practice. This will outline what employers, parents and, importantly, the provider can expect from a company who has signed up to the code.
NDNA is sharing some of the issues in the system, and crucially how these can be put right through consistency across different companies. Simple steps could include removing administration issues, such as better referencing payments so nurseries can see whose vouchers have been processed.
Of course, ensuring compliance with any code will need genuine commitment from voucher companies to make it work. We want such a code to clearly outline what all involved can expect, and have methods for providers to report breaches. The code can then act as a reassurance to employers, providers and parents that they are working with a company that has everyone's interests at heart. Providers should also highlight to parents why they should encourage their employer to choose a company that adheres to the code.
There is no doubt that there have been issues with childcare vouchers, but this code is a chance to make vouchers a great benefit for parents, employers and providers.
- Purnima Tanuku is chief executive of the National Day Nurseries Association
