Childcare vouchers (CCVs) are to remain open for a further six months, Damian Hinds Secretary of State for Education confirmed in a Parliamentary debate.
The announcement follows months of campaigning to stop the closure of the scheme by childcare voucher providers and employers alike. The move has been largely welcomed by the industry which believes that CCVs still have a vital role to play.
Commenting on the announcement, a spokesperson from CCV provider Edenred, said: ‘We are still awaiting clarity from HMRC on a number of issues, namely the exact date, but also issues such as what happens to those parents who joined Tax-Free Childcare (TFC) because they were not in a position to join CCVs now, but may be in the near future.
‘We appreciate it is a very last minute U-turn from the government resulting in some disruption to employers that have already been preparing to close their schemes to new entrants over the next few weeks,’ said the spokesperson.
The government’s TFC scheme has been introduced to replace CCVs. However, it has been plagued by delays and technical difficulties, while ministers have also faced criticism over the timing of the CCV scheme closure.
Edenred has stated that it will continue to campaign to keep CCVs open to new entrants.
