UCAS - Childcare voucher scheme

Tax-saving solutions for childcare

The childcare voucher scheme is a simple, convenient and cost-effective way to help balance the demands of work and family. It is designed to allow you the same level of childcare that you currently enjoy, but at a significant saving, because the cost is recovered from your gross salary.

Save on tax and national insurance

By sacrificing some of your gross salary and converting that amount into the form of childcare vouchers, you will be able to save on both National Insurance contributions and tax. If you take the maximum allowance of either £55 per week or £243 per calendar month, you will save the tax and National Insurance you would normally pay on the cash amount. Typical savings are between £915 and £1,195 per year if you take the maximum value.

Vouchers for a wide range of childcare options

The e-vouchers are easy to use and give you the freedom to choose the type of childcare best suited to your circumstances and your child's needs. The provider must be registered or approved. Each parent who joins the scheme will have his or her own personal account, which can be accessed over the internet and through a freephone number.

Vouchers can be used in full or part payment for:

registered child minders
nurseries and nursery schools
playgroups/creches
nanny (in parent's home)
out-of-school schemes
holiday play schemes.

The vouchers can be used to pay for the care of children up to the age of 15 (until 1 September following their 15th birthday) or the age of 16 if they have special needs (until 1 September following their 16th birthday).