Childcare vouchers and older children

[JohnHunter]

Two children - ages 6 and 4.

I have just transferred the final payment to our 4-year-olds's nursery.

My marginal tax rate is 60% so I have been very grateful for childcare vouchers over the last few years.

However, it clearly doesn't make much sense just to have them accumulating if I can't then use them for anything.

I understand that they can be used for various types of childcare (including tutors) later on but that they can also expire if unused.

Shall I carry on sacrificing salary for the tax benefits or just grit my teeth and cancel my membership of the scheme? It is of course closed to new entrants so leaving now would be a one way street.

What are you doing for childcare? I used to use them to pay for after school club and holiday club.

We used them for after school club (though obviously a lot less than nursery) but the holiday club we used couldn't accept them, which was a pain. If you're not sure if you'll need them yet then you could reduce down to the minimum for a bit, then you won't be accumulating heaps, but keeps your place in the scheme if you need to increase it again in later years? We only stopped completely when DS finished primary.

Just reduce to minimum payment to keep in the scheme.

We use them for breakfast club, after school club and all sorts of camps in the school holidays. It's been brilliant to just accrue a lump sum and then bang it on summer camps to break up the long hols.

Unless you have all your childcare sorted until they no longer need supervision, you'd be mad to stop now. It's basically free money to pay for necessary services.

Unless you categorically don't need any other childcare for the next 6 or 7 years, then obviously, different story.

I ended up with lots of money in my account (ds missed the last couple of months of nursery due to covid), so I've got about 500 quid to use up. I'm using some of it to cover holiday club this summer. I'm still paying one pound a month into the scheme for now just to keep it open.

Over the years I've used mine to pay for childminder, holiday club, after-school club, and swimming lessons.

I'd keep paying £1 a month in for now until you know if you can use it. You may find you have a regular child care need that uses them

I'm in similar situation. School breakfast club won't take them, no need for after school childcare due to still working from home. Currently paying £1 a month and have for over a year just to keep the account open in case things change.
£12 a year isn't much to lose if can't refund them and don't use them. But if do need to use them then at least the account is open to start paying more in.

Some evening babysitters accept them. There is no requirement only to use them for daytime care.

PGL activity holidays and Summer camp type places may accept them.

If you needed a temporary nanny for some reason, they may accept them. Example: Oct 2019 I did a couple of weeks due to a parent injuring their foot.

Try to find ways to use them up every now and then.

Ours are valid for three years. We have built up a lot this year but it's been great for covering childcare over the summer. Usually we have to pay out extra in the summer holidays.

We both used full £243 each month when kids were in nursery but now only pay £1 and £50 a month to cover some wraparound care and the odd childcare activity. Not many accept it round here, but when they do it is a significant saving. The £1 a month is just to keep open option if we need to use in future.
@Noworneverever - might be worth lobbying school to accept vouchers, I did this.