child care vouchers

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Does anyone know about this scheme - what are the pros and cons? does it affect your employers pension? How do nurseries redeem the vouchers? Anything else relevant?

I get them from work. The only con for the employee I can see is if they get an annual increase in a percentage of salary - it will be less increase iykwim.
I get £250 a week wages and £50 vouchers, so effectively get £300 a week. But if I was to get a 5% raise each year - it would be %5 of £250 only. Also applies to pension I would only get pension contributions as a percentage of the £250,
However this all depends on the employer. I work for such a small company that I prob would get an annual increase of say £500 - rather than a percentage.
But I pay less tax and NI as the £50 a week is free from both. The emnployer doesn't pay Ni on it either so a saving for them too.

Thanks - how does the nursery cash them in?

www.mumsnet.com/Talk?topicid=2300&threadid=148116&stamp=060221151835

another thread on this.

I presume the nursery sends the voucher to say, Early Years and Early Years transfers money to the nursery's bank account.