Benefit: Childcare Vouchers
Provider: Edenred Edenred Parent pages
Background: Childcare Vouchers allow you to salary sacrifice the cost of childcare from a range of approved providers up to a maximum monthly value of £243. Where both parents are working at Lancaster University, both parents can claim the tax and NI free allowance making a total of £486 per month. Childcare Vouchers provide the same benefit as the preschool centre but with the added flexibility of using any registered provider.
Your childcare provider must also be able to accept payment electronically to their own bank account. If you currently receive or are entitled to the Childcare Element of Working Tax Credits then you should investigate with the Department of Work & Pensions whether opting to take Childcare Vouchers will provide the best overall benefit. You are possibly entitled to the Childcare Element if both you and your partner are working and your joint income is less than £60,000.
The system will automatically include your existing choice (carried forward from last year); you can then change your preference if you wish.Flexible benefit Options:
£1 - £243 per monthAmendments to Benefit:
The amount you wish to receive can be changed on a monthly basis by initially contacting the Flexible Benefits Helpdesk.
Requested changes need to be communicated to the Helpdesk no later than the 23rd of the month before the month that the change is required.
Tax and NI implications: This is operated by salary sacrifice. You will save tax and NI on this benefit.
Savings: Based on spending £243 per month on Childcare vouchers a member of staff on £25,000 would save approximately £71.44 per month.
How do I get this benefit: If you select Childcare Vouchers for the first time, you will receive an information pack explaining how to use your electronic vouchers and your user log in information. If your child minder is not registered with Accor Services then they will have to complete a form which you should receive in your parent pack. If they are registered, they will already have their own Edenred/Accor Services account and can use their existing account number.
For employees who joined the scheme after 6 April 2011: higher rate tax payers will only be able to receive £124 a month, tax and NI exempt. Those paying the additional rate of tax will have the tax and NI exempt amount restricted to £110 a month.For further information see:
I chose this benefit during last year's enrolment. What happens if I do nothing during this year's Flexible Benefits enrolment? This benefit will automatically renew for you for the new Flexible Benefits year.
Last updated Feb 14 (Flexible Benefits Helpdesk)
Review Date Aug 2014