Dispelling the Childcare Voucher myth

Like me, you’re probably waiting for the budget announcement on 22nd June, to see if there’s any mention of childcare reform and funding. I don’t know yet whether childcare will feature in the budget, but I’ll be monitoring it carefully and keeping you up to date through the blog.

As I said a couple of weeks ago, we’re in a good position under the coalition government at the moment and I’ve been trying to dispel a pretty big myth lately; that smaller business can’t benefit from offering Childcare Vouchers in the same way that larger companies can.

Research shows that 80% of employers not currently offering childcare vouchers have fewer than 100 employees. Often smaller businesses believe there isn’t as much benefit for them, they don’t have enough parents to qualify and they’ll be under resourced to cope with a further administrative burden.

This really isn’t the case. There’s minimal admin as the voucher provider does that and CVS don’t require a minimum number of parents, so even if only one employee qualifies you can start a scheme today. Most importantly, all companies, regardless of size, make savings on National Insurance for their employees who use the scheme. This means that the scheme is effectively cost neutral to run, and is the same across the board for companies large and small.

During tough economic times, the kind of which we’ve all struggled through for over a year now, Childcare Vouchers are a way to make it easier for your employees and to help take the strain away.

So if you’re a parent thinking about asking your employer to start a scheme, or an employer who isn’t sure whether to take the plunge or not, my advice is go for it – it’s one of the best ways to save money.

You might also be interested in the below articles which I’ve written on this topic:

Making the most out of employer perks - Fresh Business Thinking

Childcare Vouchers - Smallbusiness.co.uk