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Childcare: Employer vouchers confusing parents

Many parents are confused about new employer childcare vouchers, according to a leading family charity.

Working Families has also warned that parents are not aware they may have to give up some of their salary with a knock-on effect on other benefits.

Catherine Rogan, a rights adviser for the charity's helpline, said many people were unaware the 50 per week tax-free vouchers were available.

"Even people who know don't understand it," she added. Parents are also unaware taking up the vouchers as part of a salary sacrifice scheme could affect work-related benefits. Employers can opt to calculate employees' taxable earnings including the vouchers.

Rogan said there was a need for greater publicity and clarity, while the TUC has warned parents on low incomes could lose out.

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