Child Care Vouchers

(asked on 26th June 2018) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of the closure of the childcare vouchers scheme on universal credit claimants who currently access both schemes.


Answered by
Elizabeth Truss Portrait
Elizabeth Truss
This question was answered on 2nd July 2018

There will be no impact on parents currently using vouchers when the scheme closes to new entrants in October 2018. Parents that are using childcare vouchers will be able to continue doing so, while they work for the same employer and their employer continues to offer them.

Universal Credit claimants are unable to receive help with childcare costs through Universal Credit at the same time as using childcare vouchers.

The government has increased the support available to parents on Universal Credit, who can now get up to 85% of their childcare costs paid. This means the vast majority of Universal Credit claimants are better off getting help with their childcare costs through Universal Credit than through the voucher scheme.

Most vouchers schemes are run through salary sacrifice arrangements, and because you cannot salary sacrifice below the National Minimum Wage, the vast majority of parents on low income are not able to get childcare vouchers.

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