Childcare Vouchers, the small print

[northender]

We want my dh to start claiming Childcare Vouchers, however I've just been reading the terms & conditions. It reads something like......the employee accepts that should they leave the scheme it is at the discretion of dh's employer whether the salary is replaced or not. This is a civil service employer so I can't help feeling that to enrol on the scheme puts his salary at risk if our circumstances change and we withdraw from the scheme (especially given the current public sector situation). Is this normal practice?

Yes, this is necessary in order that the scheme is a genuine 'salary sacrifice' which is a necessary condition for the tax relief.

Personally I would assess the risk of an employer not reinstating salary following withdrawal from the scheme (subject to any specific limits such as not switching more than twice a year) as pretty small - it would be a good way to piss off your staff without saving any money (because people would keep taking the vouchers as they wouldn't be any better off by not taking them, if you see what I mean).

Thanks mranchovy, so it is a standard clause. It makes sense when you put it like that. I think it's highly unlikely they would do that then and anyway it's going to be a few years yet before we stop needing some form of childcare!

If he is civil service, get him to check his HR policy . For at least one department the HR policy states that while it is salary sacrifice, subject to conditions, there won't be a prob getting it back.