Information for Parents
What are childcare vouchers?
Childcare vouchers are a Government scheme designed to help parents afford high quality childcare.
Unlike many Government benefits, there's no claim forms for childcare vouchers . . . making them an easy way for you to save money.
How can I save money by using KiddiVouchers?
You can receive childcare vouchers of up to £55 a week (or £243 a month) from your employer, depending on your earnings. Broadly speaking, basic-rate taxpayers can receive up to £55 a week (or £243 a month), higher-rate taxpayers can receive up to £28 a week (or £124 a month) and additional-rate taxpayers can receive up to £25 a week (or £110 a month). When you join the scheme, we'll help your employer to assess the amount of vouchers which you can receive. The earnings assessment is based on contractual pay and benefits from your employment, so some parents who pay higher-rate tax as a result of overtime, discretionary bonuses or investment income will still be able to receive the full voucher allowance of £55 a week.
Parents who ordered their childcare vouchers before 6th April 2011 can receive up to £55 a week of childcare vouchers, regardless of their tax band. This exemption applies as long as they don't move to a new job or leave the scheme for a period of more than 12 months.
Childcare vouchers are usually received instead of part of your salary, through a system known as 'Salary Sacrifice'. Unlike your salary, you don't have to pay any tax or national insurance on childcare vouchers. The saving in tax and national insurance is typically worth around £900 a year for basic-rate taxpayers, so families can save around £1,800 a year. Your savings will depend on the amount you earn and the amount of tax you currently pay. Click here to find out how much you could save.
What types of childcare can KiddiVouchers be used for?
You can use childcare vouchers for many different kinds of childcare, ranging from nurseries and childminders through to out-of-school activities for older children. Click here to find out more.
How can I get started?
To use KiddiVouchers, you need your employer to offer a KiddiVouchers scheme. If your employer already has a KiddiVouchers scheme, click here to join. Otherwise, click here to register your interest, and we will contact your employer with details of how to set up a scheme.
What is my KiddiVouchers account?
When you sign up for KiddiVouchers, we'll provide you with a secure online voucher account. You can use this account to edit your contact details, tell us which childcare providers you use and spend your vouchers. However, if you'd rather not use the online facilities, it's also easy to manage your vouchers by phone or post.
What's the difference between 'Salary Sacrifice' schemes and 'Addition-to-salary' schemes?
Most employers provide childcare vouchers through salary sacrifice, but occasionally employers offer childcare vouchers as a free benefit in addition to salary. Addition-to-salary schemes are also commonly used by very small businesses. If your employer already runs a KiddiVouchers scheme, we'll be able to confirm whether it is salary sacrifice or addition-to-salary. Just call us on 0800 612 9015 if you have any questions.