Info about the new tax-free childcare scheme

[sarah707]

I have just received this from Busy Bees - via another childminder.

It will be relevant to everyone who accepts vouchers to pay for childcare FROM 2015 - nothing to worry about yet!

However, if we have the facts we can let parents know



Important Information About The New Tax-free Childcare Scheme

The government has announced that from 2015 the current childcare voucher scheme will be replaced with the Tax-free Childcare scheme which will benefit more parents.

As a childcare provider, you will need to know about the new funding scheme as parents will naturally have questions about the available savings and how their childcare bill will be paid. As it will be down to parents to choose a provider for their Tax-free Childcare scheme account, they may seek advice directly from childcare providers.


The key points of the scheme are outlined below:

· The Tax-free Childcare scheme will save parents up to £1,200 per child per year.

· It is planned that the Tax-free Childcare scheme will be phased in from Autumn 2015.

· The Tax-free Childcare scheme will benefit more parents than are currently receiving childcare vouchers – around 2.5 million families compared to 0.5 million.

· For the first year, the Tax-free Childcare scheme will only be available to those whose children are under 5.

· Over time the scheme will grow to include children under 12

· Unlike the childcare voucher scheme, both parents must be in work in order to receive the funding.

· The parent will pay 80% of their childcare bill, which will be match funded with 20% from government. So, for a childcare bill of £100, the parent will pay £80 and the government will pay the remaining £20. This will be administered via a voucher provider.

· Parents will have to fund anything above £7,200 per annum (£6,000 from the parent, £1,200 from the government)

· As with childcare vouchers, parents will be able to use the Tax-free Childcare scheme only to pay for registered childcare.

· The new Tax-free Childcare scheme will eventually replace the current childcare voucher scheme.

· The childcare voucher scheme will continue to be available to parents who wish to join until the new funding is available.

· Some parents will be better off under the childcare voucher scheme and will be allowed to choose whether to continue receiving childcare vouchers for up to five years after the Tax-free Childcare scheme is in place.

· The finer details of the Tax-free Childcare scheme will be set out following a consultation. Busy Bees Group will of course be contributing to this process to ensure parents get the best deal possible.


How will the changes affect childcare providers?

As it has been estimated that the new scheme will benefit up to 2.5 million parents, this is good news for childcare providers who may see an increase in occupancy.

We will contact you with further details of the new funding scheme in due course. We will communicate directly with parents currently paying their childcare bill using Busy Bees Benefits childcare vouchers to keep them fully informed of the changes and any action they need to take.

As the Tax-free Childcare scheme will not be available until 2015, you can help parents now by letting them know about childcare vouchers, which could save each working parent up to £933 per year. Urge them to ask their employer to provide a scheme if they don’t already have one. They can find more information at Childcare Vouchers | From the UK's Largest Childcare Provider. Joining a childcare voucher scheme now will also allow those who may be better off with childcare vouchers to maintain their rights to the maximum amount of support after the Tax-free Childcare scheme is in place.

If you have any questions about the Tax-free Childcare scheme at this stage, please contact Busy Bees Benefits at carer@busybeesbenefits.com or telephone 0330 333 9100.

Childcare Vouchers | From the UK's Largest Childcare Provider

Busy Bees Benefits has a duty to keep you informed and communicate with you about issues which affect your childcare voucher scheme. You are not able to opt out of receiving these updates. However, if you have previously unsubscribed from marketing or promotional communications, you will not receive further emails in that category.

[blue bear]

Thank you Sarah and the childminder who shared the info with you.

[LauraS]

· Parents will have to fund anything above £7,200 per annum (£6,000 from the parent, £1,200 from the government)

Sarah, I don't think this bit is correct, parents will have to fund anything above 6000 per annum, 4800 from the parent plus the maximum 1200 from the government. Unless I'm not understanding correctly.

Don't agree with them that parents will be better off either :s. Some will definitely lose out.

[sarah707]

Sarah, I don't think this bit is correct, parents will have to fund anything above 6000 per annum, 4800 from the parent plus the maximum 1200 from the government. Unless I'm not understanding correctly.

Don't agree with them that parents will be better off either :s. Some will definitely lose out.

oh heck sorry I don't pretend to be an expert I am just passing on something I have been given sorry! xx

[lizduncan72]

The parents I have that currently pay with vouchers will definitely not be better off-at the moment they get £55 a week paid by voucher but 20% will only give them £27

[Sarsar3NCH]

The parents I have that currently pay with vouchers will definitely not be better off-at the moment they get £55 a week paid by voucher but 20% will only give them £27

The £55 voucher each week is paid for directly out of their wages though so what they are saving is the tax/NI element only......I think

[LauraS]

oh heck sorry I don't pretend to be an expert I am just passing on something I have been given sorry! xx

Of course, was just surprised that busybees didn't get it right

[jackie 7]

Ah but remember like so many government

[jackie 7]

Sorry late at night and pressed wrong part of iPhone. Like so many government diktats it could change when the election is over. I still can't understand why they just didn't understand why they didn't expand the present scheme. Oh yes civil servants need a job. I think childminders would run the country better. We could put a naughty mp in the thinking spot. ET first!!!