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Loss of vouchers will cause parents to leave work

1 min read Early Years
Six out of ten parents that use childcare vouchers will reconsider working if tax relief on the scheme is phased out, according to a new survey.

A poll of 1,800 parents carried out by Computershare Voucher Services - an organisation that administers the childcare vouchers scheme - also showed that 57 per cent of parents would not be able to "maintain their existing childcare arrangements" without the vouchers.

The government has plans to stop childcare vouchers for more than 340,000 parents in order to fund free childcare for 250,000 two-year-olds by 2015.

Almost all those surveyed (98 per cent) said they disagreed with the government's proposal to phase out tax relief on the vouchers.

The vouchers enable working parents to make savings on the cost of their childcare by giving them the option of receiving £243 of their pay each month in vouchers before income tax and national insurance is deducted.

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