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Government urged to give guidance on childcare vouchers

1 min read Early Years
The Daycare Trust has urged the government to provide reassurance to employers considering withdrawing from the childcare vouchers scheme over concerns about a European court ruling.

The childcare charity said there was no evidence of employers pulling out "en masse" from the scheme, after a ruling last October that companies should continue to make payments for vouchers when female workers take maternity leave without their salary.

But the British Chambers of Commerce (BCC) is advising employers to stop offering the benefit if they are worried about becoming liable for costs in such cases.

The childcare vouchers scheme, which was introduced in 2005, allows employees to sacrifice part of their salary in exchange for the vouchers.

Employers do not have to pay national insurance on money that staff contribute to vouchers.

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