The government has confirmed that childcare vouchers (CCVs) will now close to new entrants on 4 October 2018.
The Income Tax (Limited Exemptions for Qualifying Childcare Vouchers and other Childcare) (Relevant Day) Regulations 2018, published on 29 March, confirmed the exact date when CCVs and directly contracted childcare that is part of employer-supported childcare arrangements will stop admitting new entrants.
Those who are already in the scheme by this date will be able to continue using CCVs for as long as they are with their current employer and their employer continues to offer them.
The alternative to CCVs is the government’s tax-free childcare scheme. Under this initiative, the government will top up parents’ tax-free childcare account with 20 per cent of childcare costs up to a total of £10,000 – the equivalent of up to £2,000 support per child per year (or £4,000 for disabled children).
