Help from employers

Large local employers like the NHS and the local authorities can be encouraged to help towards childcare costs. From April 2005, the Government is going to reform the existing tax and National Insurance (NICs) exemptions to support the national childcare strategy.

The changes from 2005 focus on employer-supported childcare like workplace nurseries and childcare vouchers and provide a better incentive for employers to support the provision of childcare for their employees.

Childcare vouchers

Childcare vouchers are a way of paying for childcare, usually via a paper voucher redeemable by the childcare provider. Childcare vouchers are usually administered by a voucher provider for an administration fee.

Childcare subsidies

This is an amount paid to a childcare provider to subsidies the cost of care for staff. An example would be a £5 a day subsidy for a holiday playscheme.

Workplace provision

Workplace, or in-house provision, is where the employer is wholly or partly responsible for financing and managing the provision or the care is provided on premises, which are made available solely by the employer. In practice this means either a workplace nursery or an in-house /on-site holiday playscheme. A contractor may run the scheme as long as it fits the above criteria.

Full information can be found in the Childcare section of the Inland Revenue website.