Personal finance expert recommends childcare vouchers

Employers looking for worthwhile ways of boosting staff morale may want to consider implementing a childcare voucher scheme after a personal finance expert writing on MoneyWeek preached recommended them as a great way to cut the cost of child care.

Ruth Jackson, staff writer for MoneyWeek, said that, according to research from LV=, the average child now costs its parents £201,809, or £800 a month and listed a number of ways for mums and dads to get round this.

She wrote: "Another way you can reduce your babysitting costs is by using childcare vouchers. Unlike tax credits, these are available to all working parents regardless of income. The only proviso is that your employer has signed up to the scheme.

"You can exchange up to £243 a month of your pre-tax salary for either electronic or paper vouchers - note that the paper ones expire after a year. If both parents can claim the vouchers, then basic-rate taxpayers can save up to £1,808 a year."

Childcare vouchers help companies as they provide employees with an incentive to pursue a career with said employer. Additionally, employers do not have to pay their national insurance contribution on the money employees allocate to the scheme. Back