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To draw your attention to closure of childcare vouchers scheme

(44 Posts)
Rainatnight Thu 01-Mar-18 16:02:09

The existing childcare vouchers scheme is closing to new entrants. The replacement scheme will be less beneficial for some people. If you want in to the old one, you need to act now, because your employer needs to process it in time for April.

This is particularly relevant to new parents. I'm on mat leave at the moment, but my employer is letting me 'buy in' to the old scheme with a nominal sum, just so I can get in under the wire.

This explainer from Money Saving Expert is very helpful in deciding which is the best scheme for you.

missiondecision Thu 01-Mar-18 16:08:04

It’s being replaced with a tax free childcare scheme.

Rainatnight Thu 01-Mar-18 16:15:52

Yes it is, which is less advantageous for some people. The MSE link explains the differences.

DSHathawaysLover Thu 01-Mar-18 16:48:10

Rain this has been on the cards and well known for a few years, the demise of childcare vouchers has already been pushed back a couple of times. It's a done deal I'm afraid. Sooner or later, all childcare voucher schemes will also close to existing members.

MyDcAreMarvel Thu 01-Mar-18 16:50:19

Yes it's been on the cards for years but now it's happening.
Childcare vouchers are better for the majority, they can be also used in conjunction with tax credits ( after the maximum ).

Rainatnight Thu 01-Mar-18 17:17:54

Sigh. DSHathaways it's not well know to everyone. If you're a new parent, and not using childcare previously, you mightn't have been on the lookout for the changes. And I know it's a done deal. I was just flagging it to others who might not have known.

honeylulu Thu 01-Mar-18 17:36:34

You can still use childcare vouchers if you earn over 100k. That's not true for tax free childcare scheme or 30 free hours so for high earners that's an important difference.

MyDcAreMarvel Thu 01-Mar-18 19:16:00

If you earn over 100k you should not be receiving subsidised childcare.

Nicknacky Thu 01-Mar-18 19:18:05

Isn't it just tax free rather than subsidised? Childcare vouchers is the only assistance we have with paying for childcare.

restingbemusedface Thu 01-Mar-18 19:19:33

Late train

Snausage Thu 01-Mar-18 19:23:59

Says who, MyDcAreMarvel? If someone is eligible, they're eligible, even if you don't think so.

honeylulu Thu 01-Mar-18 20:18:34

If you earn over 100k you should not be receiving subsidised childcare.

Why not? I also use the NHS and send my children to state school. Should I not do that either?

Rainatnight Thu 01-Mar-18 20:40:03

honey if you earn over £100k, you can continue to use vouchers if you're already in a scheme. If you're not, then the scheme will be closed to you from April and you won't be eligible for the new one.

Bodicea Thu 01-Mar-18 20:43:49

Why not mydcaremarvel?

If you earn over £100k you already pay a significant amount of tax and don’t get child benefit. Why should every little perk be taken off you?

This attitude annoys me in this country. The more tax you pay the less people think you should get. Everything is means tested . You end up with lots of cliff edge problems where there is no benefit in getting a raise.

All tax payers should benefit. That is the attitude in most European countries. ie in Germany they get wrap around childcare no matter how much you earn. Everyone pays in, everyone gets out, everyone goes back to work.

TooStressyForMyOwnGood Thu 01-Mar-18 20:46:18

YANBU at all to publicise it. Lots of people don’t know about this.

honeylulu Thu 01-Mar-18 20:48:04

Thanks Rainatnight I am in a voucher scheme already. I'm chasing my husband to join his work scheme before the deadline - this thread reminded me to remind him!

toddlermom Thu 01-Mar-18 20:48:05

Thanks for this op!! Good to know!!

Rainatnight Thu 01-Mar-18 21:15:14

Cheers! That's why I wanted to post.

ScarlettInSpace Thu 01-Mar-18 21:25:45

Unfortunately it’s already too late sad

I looked into this yesterday, and to qualify (at least with my employers scheme) you have to have registered by the end of February so they can process a payment at the end of March.

Frustratingly I needed my daughters birth certificate to register for the voucher scheme but we could only get an appt at the registry office today so we’ve missed it angry

Rainatnight Thu 01-Mar-18 21:26:54

Oh no! sad My work are saying they can still do it.

Nicknacky Thu 01-Mar-18 21:33:36

Is this for all schemes? One of my colleagues was looking at joining edenred soon?

Stealthtoast Thu 01-Mar-18 21:40:21

Does anyone know: what happens to childcare vouchers in your account when you switch to tax free childcare - can you still spend them?
For tax free childcare, can we start paying into it now to build up credit for future child care costs? Does it ask what your current childcare costs are when you apply and do you have to provide evidence? is there a time limit for spending it? the government website is no help on any of that...

MyDcAreMarvel Thu 01-Mar-18 21:59:41

Nick- yes for all schemes
Stealth- nothing happens to your vouchers you can continue to spend them.

Nicknacky Thu 01-Mar-18 22:02:41

Thanks, will let him know if he doesn’t already.

SimplyJaded Thu 01-Mar-18 22:05:53

I'm so pissed off about the end to new joiners.

Dh has just been made redundant...and by the time he gets a new job the scheme will have closed angry

Yanbu though op, plenty of people are still not aware.

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