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Childcare voucher (CCV) schemes are an initiative launched several decades ago to assist families with low incomes in ensuring their children still benefit from quality childcare. These schemes are run by companies; ask your employer if they currently run a childcare voucher scheme.
Up to £55 a week of your salary can be paid in childcare vouchers, which do not appear on your payslip – this means you do not need to pay as much tax and National Insurance contributions, since your salary is nominally lower. Exact amounts will differ according to individual incomes and circumstances.
Many people are eligible to take part in these schemes, but are unaware of this! A common misconceptions is that these vouchers can only be used for nursery costs, but this is false – it applies to all approved childcare, such as tuition with The Local Teachers. To find out if you are qualified, contact your HR department irrespective of your company size – this is a programme which all employers can register for. It doesn’t hurt to investigate a little, even if you are unsure.
As of 4th October 2018, this scheme has closed. It is no longer possible to apply, and current claimants can only continue claiming if:
- Their wages have been adjusted on or before 4th October 2018
- Their employer is unchanged and they continue to run the scheme
- They do not take an unpaid career break of over a year.