Just seen a news-wire that suggests that Childcare Vouchers could be removed as part of Government proposed reforms. The article can be viewed here:
https://www.wsandb.co.uk/wsb/news/2234255/childcare-vouchers-could-be-scrapped-in-govt-overhaul
This of course co-incides with the removal of Child Benefit for families where one parent earns above £60k, which comes into force today.
The suggested replacement would appear to be a ‘flat rate’ allowance of £2k to encourage parents back into the workplace, which is not to be means-tested.
I have no other information on this other than the above article, and so my thoughts below may change with further clarification.
But, given the timing, I can’t help feeling that some of this is political spin to take the edge of the Child Benefit issue. And at first glance, the move away from means-testing would be the polar opposite of the rationale for the Child Benefit decision.
Oh, and this would appear to also have the potential to further enrage those families who have elected to keep one parent at home to look after the children, as they are unlikely to see the extra allowance, and would not be able to continue with Childcare Vouchers either.
Still, stranger things have happened, and it’s something that I will pay close attention to as the story unfolds.
Experience of such proposed changes suggests that there may be significant changes between the original proposal and actuality. So no need for any employer to react to this story just yet.
Will keep you posted.
Best regards
Steve
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