The
government has announced changes to financial support for working parents who use
registered childcare. The new scheme, available from Autumn 2015, will mean
funding is offered to households where both parents work and to single parents
who work. It will be allocated per child. The funding will eventually replace
the current childcare voucher scheme, which will continue to be open to new
joiners for a period of 5 years. During that time parents will have the option
to choose the scheme which best suits them.
The
new Tax-free childcare scheme will be based on a subsidised model and will be offered via Childcare Voucher companies such as Busy Bees Benefits which already operate the current childcare
voucher scheme. Under the new scheme it will be up to individual parents to
choose their voucher provider. Given this change, childcare providers will no
doubt find themselves playing a greater role in advising parents about the financial
support available to make their childcare more affordable.
The
new scheme will not only increase the financial support for many parents and
thus increase occupancy, it will simplify the payments system to childcare
providers, with the government funding (20% of the bill up to a maximum of £6,000
per year) providing savings of up to £1,200 per child.
JohnWoodward, MD of Busy Bees Benefits said:
“BusyBees Benefits welcomes the principle of this proposal as it will be simpler for
parents and childcare providers to understand and access. As a childcare
voucher provider with many years’ experience in the sector, Busy Bees Benefits
is well placed to offer the new funding scheme. We will make it as easy as
possible for parents and carers. We introduced childcare vouchers to 100,000
parents and became the leading provider. We will do the same with the subsidy
scheme, ensuring as many parents as possible make use of their entitlement and
that they are allocated the correct amount of funding. We will provide a service for everyone.”
Whilst
the childcare voucher scheme is a popular and effective way to support working
parents, it is clear that rising childcare costs, the fact that employers are
not obliged to offer a scheme, and that those who are self employed or on very
low pay cannot benefit from the savings, means that change is now necessary.
One of the shortcomings of the current childcare voucher system is the fact
that it is not index-linked which means that the savings have not changed since
2006.
Busy
Bees Benefits recognised the increased squeeze on ordinary working families and
has been campaigning for the last year for the maximum amount of pay which a
parent can sacrifice from their salary to be increased, working on behalf of
parents who have struggled to meet 2012/13 costs with 2006 allowances.
It
is estimated that 2.5 million parents will benefit under the new scheme, more
than twice as many when compared to childcare vouchers.
No comments:
Post a Comment