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Original poster

Childcare vouchers while on maternity leave

18 replies

lemontop · 18/04/2012 12:33

Just wondered if anyone could help with a work related issue I have. Part of my work maternity package is that I get the option of having half pay + smp for 12 weeks. I can either take the half pay while on maternity leave or receive it all as a lump sum after I have returned to work for 3 months. I wanted to check with HR how this would affect my childcare vouchers. My company has said

'You will continue to be deducted for the vouchers while you are being paid, if you decide to take the half pay + SMP at the end as a lump sum we would not provide the vouchers as you may decide not to return to work.'

Can they refuse me the vouchers on the basis that I might not come back?

OP posts:
sunnyday123 · 18/04/2012 12:44

how can they refuse??? If you have received the lump sum after being in work 3 months then you have satisfied that criteria?

Why are your vouchers not being allocated to the company you have them set up with? e.g my vouchers are with You at Work - they are sent there at the end of the month and then i allocate them to the nursery - if on mat leave surely they will just build up with your voucher supplier- nothing to do with employer? and you can do what you want with them. Once they have come out of your account, they shouldnt have access to them

Original poster
lemontop · 18/04/2012 12:54

I was trying to work out the best deal for me while I was on leave. I don't think vouchers can be deducted from SMP, so if I took the half pay lump sum after returning to work for three months I thought it would work out better in my favour. If I took the half pay plus SMP while on maternity leave for those 12 weeks, the vouchers would come out of the half pay. I think my employer is saying that if I do this-they will not authorise any vouchers because there is a possibility that I might not return to work.

It just seems a bit cheeky. I thought I was entitled to them regardless of whether I returned to work, and I am planning to go back.

Does that make sense?!

OP posts:
sunnyday123 · 18/04/2012 13:00

maybe you should just cancel your vouchers then and restart after maternity leave? That way you can take the lump sum or be paid monthly.

Not sure i fully understand - if you take the lump sum then you wont be paying vouchers during mat leave anyway so are you talking about the 3 months afterwards? Again if they are taken out of your cash monthly how can they access them to withhold anyway??

You are allowed to cancel your vouchers with a couple of weeks notice as it consitutes a life change.

Original poster
lemontop · 18/04/2012 13:20

Sorry It's difficult to explain. I don't want to cancel the vouchers. I get them for DS1 who is 2yr 6months. I may or may not keep him in nursery while I am on maternity leave or I may take him out of nursery and save the vouchers to use when I have to pay for childcare for two children but I don't want to lose them as I am entitled to them. My maternity package is

6 weeks full pay
12 weeks half pay + smp
21 weeks SMP

During the time I am being paid any more than SMP the vouchers will be deducted from my pay but I think my employer is not allowed to deduct them from SMP alone, so they will count as an extra benefit. Therefore it would make sense to take the option of having the 12 weeks of half pay paid after I return to work for 3 months as I'd be better off but my employer is telling me they just wouldn't pay the childcare vouchers while I was on maternity leave in that situation in case I chose not to return to work. I just wanted to check that they were in their rights to do this. It's not a huge amount of money I'm talking about but would rather not lose out if I don't have to.

OP posts:
sunnyday123 · 18/04/2012 13:25

but the vouchers come out of your pay through salary sacrifice - if you are not being paid surely they dont acrue? smp is not salary. i was told i wouldn't get vouchers when on smp - if what you are saying is true i think ive been had off! Sorry i've nothing to add as clearly i was given poor info!

flowery · 18/04/2012 13:59

No they can't stop them regardless of whether you return to work or not. Just as you continue to accrue holiday during your maternity leave, or can keep your company car if you have personal use of it, childcare vouchers are the same, they are a contractual benefit you get and are not dependent on returning to work.

You are right that they cannot be deducted from SMP so in your situation you should opt for a lump sum bonus on returning and keep the vouchers.

Original poster
lemontop · 18/04/2012 15:04

Thanks flowery. That's what I thought. I certainly didn't think they could refuse to pay the vouchers on the off chance that I don't return to work.

I don't suppose anyone knows where I could find documentation to back this up if they choose to disagree?

OP posts:
sunnyday123 · 18/04/2012 15:06

are we talking about the same childcare vouchers - the ones you can get through a provider up to £243 from each parent? !

Original poster
lemontop · 18/04/2012 15:10

Yes, sunny. Sounds like you should have been entitled to them while on SMP.

OP posts:
sunnyday123 · 18/04/2012 15:35

but how are you entitled?! Who is paying for them? They are not classed as a contractural benefit - they are a government scheme to help parents aren't they? I must do some research! Ordinarily, they come out of your salary but if you are not paid does the employer pay them for you? Ive never heard of this at all and i have lots of friends who use them!

nextphase · 18/04/2012 15:50

Exactly what Flowery said.
There is some fairly well written advice here which also has a link to the HMRC doc covering things, but its a bit heavier on the reading!

Sunnyday - The company has to cover the cost! Like they do with pension contributions if that was made by salary sacrifice.

flowery · 18/04/2012 16:31

They are a contractual benefit sunny. You don't pay for them, your employer does.

In return for your employer agreeing to provide you with vouchers, you agree to sacrifice some of your salary. Which means your salary goes down, and you get the vouchers instead.

Original poster
lemontop · 18/04/2012 21:19

nextphase thank you for those links. I have asked the person in charge to check again. Also on reading that HMRC document it seems that the vouchers can't be deducted from the 6 weeks full pay I get at the beginning, which is great news. Need to challenge this with HR.

OP posts:
chocolatecrispies · 18/04/2012 21:41

Just to say I claimed Childcare vouchers on SMP and they were not deducted - am still getting them now and am currently on no pay as am at end of m/l - a huge extra benefit which I wish I'd known about with my first!

londonmackem · 18/04/2012 22:06

Chocolatecrispies, this doesn't work for your first as you can't claim them until the child is born, so not a current contractual obligation when you go on maternity leave.

nextphase · 19/04/2012 11:19

lemontop
Don't think you'll get them on a full pay period - SMP is "only" 90% of pay - so they will take the 10% of salary that is additional (occupational) pay. If that 10% is more than £243, you'll get the change. If that 10% is less than £243, they will make up the difference.

PS Do you live near me?? I love a lemontop.

Original poster
lemontop · 19/04/2012 16:40

Ah OK. Will check that out too! Where do you live nextphase? I live in London but originally from Boro. Miss my lemontops and parmos!

OP posts:
nextphase · 20/04/2012 10:52

I'm in Lemontop and Parmo heartlands!
I'll eat a Lemontop for you at the weekend, but draw the line at Parmos. Sorry.

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