Julian Grainger

Head of SEO at Unique

Changes to Childcare Vouchers in 2018

childcare vouchers changes 2018

Millions of parents all over the country who are paying for childcare are anxious about the changes that will be implemented in the new childcare voucher scheme. The existing childcare voucher allows people to save thousands of cash per year when availing childcare services. During first glance, the system may not sound too much, but for most families who are struggling due to the harsh economic situation, this is definitely important. The government has recently pronounced that applications for the vouchers will end on April 2018 which will be replaced by the new scheme. Parents who are not completely aware about the new scheme are as expected worried about this.

childcare vouchers changes 2018

Understanding How the Childcare Vouchers Changes 2018 Work


In order to understand the changes that will be applied on the new childcare vouchers scheme, it is important that you are aware on how the current system works. The existing system is accessible for every parent who have kids’ ages 15 years and below. Most of the employers will be offers with childcare vouchers through a ‘salary sacrifice’. Under this system, you will be obliged to give up approximately £1,000 on your salary. However, after deducting the National insurance and tax, the total cost will go down to £700. The average tax payers will have the ability to pay £243 per month which can make it convenient for the parents.


The Childcare Vouchers Changes 2018 was first released last 2014. It was originally intended to replace the current scheme. However, the date of the cut-off and the roll out has changed. The new childcare vouchers scheme is intended to help the parents in handling the cost of the childcare services, but it works in a diverse manner. The new system that was launched last April 2017 is designed to provide an addition 20% childcare cost to the qualified families. This means that if you are applying for £1,000 per year, you will get an additional £200.


How to Be Qualified on the Childcare Vouchers April 2018

Compared to the old scheme that is accessible only for the employers who are offering this scheme, the new childcare vouchers scheme is available for all qualified parents. In order to be eligible for the program, here are some of the things that you need to do.


  • You should have a child that is aged 12 years (17 years old if they have disability) and below when the new scheme started its roll out.
  • You should be working at least 16 hours/week.
  • Your annual earning should not be more than £100,000 per year.
  • You should not claim tax credits.


The Childcare Vouchers Changes 2018 is good for people/couple who are self-employed and have a total earning of £100,000/year. It is also ideal to parents who have more than one kid especially those who have increasing childcare expenses. These are some of the changes that you need to understand in the tax-free childcare program. It will help you determine if the changes that will be applied will be beneficial towards your situation or not


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