Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with (a) employers and (b) HMRC on refunding childcare voucher payments to families who have not been able to use them as a result of the covid-19 outbreak.

The availability of a refund on childcare vouchers will depend on the precise terms and conditions of the employer’s childcare voucher scheme, which is a contractual arrangement between the parent, the employer and the childcare voucher provider.

Some schemes allow for refunds on the value of childcare vouchers in certain circumstances but there is no legal requirement to do so. Where a refund is provided, the refund is treated as income from the employee’s employment and should be subject to deductions of tax and National Insurance Contributions in the normal way.

Due to coronavirus restrictions, employees may not be using all of their childcare vouchers. Users of the childcare voucher scheme can continue to receive childcare vouchers, but may wish to temporarily reduce their contributions so that they don’t accumulate a stockpile.

Contributions can then be increased as and when required. Varying the amount will not affect continuing eligibility, providing that the normal conditions of the scheme are met.