Childcare Vouchers…a baby-step forward

I’m indebted to Owain Thomas of Workplace Savings and Benefits for alerting me to the existence of the Department of Education’s “More Affordable Childcare” document. This was released last week, and amongst other topics, covers the latest state of play in the proposed changes to Childcare Vouchers.

The report can be viewed via the following link: http://goo.gl/zJzg1

I have only had a chance for a quick scan of this document (and have focussed entirely on the Childcare Vouchers sections of the report), so my thoughts at this point may be subject to change, but the following points are those that I think are of immediate importance to the followers of this blog:

  1. Autumn 2015 remains the target date for the phasing out of the old vouchers, and introduction of the new ones. This was previously given as October 2015, so this seems to show a desire to broadly stick to the proposed timeframes.
  2. The report mentions that “the government will shortly consult on the details of the new schemes, including to ensure that they operate effectively together.” This may be important, as this will give some of those parents who will be losers under the new system a chance to highlight the discrepancy between the different regimes.
  3. The report also highlights that “the ESC [Employer Supported Childcare] voucher scheme will continue for current members if they want to stay in it, but in the future eligible parents will get support through the new Tax-free Childcare scheme.” This is a crucial element of the proposals as it suggests that some of the losers in (2) above may be able to retain their rights even post 2015. However, this may only be possible if the employer is willing and able to continue the existing scheme after the new system is available (and as we have already seen, many employers are considering scrapping their scheme even before the new arrangement is in place).
  4. “The ESC voucher scheme will also be open to new joiners until the Tax-free Childcare scheme is available. Eligible ESC recipients may choose to move onto the new scheme if they wish (but will not be able to receive both)” . No surprises here, parents can only benefit from one regime at a time.

So a few signs of progress here. I shall keep my eye on the proposals as they develop.

Best regards

Steve

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