Childcare? What Childcare?
Page 1 of 4
by Nic Paton
The Government has made it easier for employers to provide childcare, but there is still a lack of awareness of the options.
It looked like an excellent early Christmas present for working parents. In December last year, paymaster general Dawn Primarolo announced that the Government would be reforming tax and National Insurance relief on employer-supported childcare, and on childcare vouchers in particular.
From April 2005, employees will be eligible to receive up to £50 a week of their childcare costs, free of tax and National Insurance, when their bosses either agree a contract with an approved carer, or provide them with childcare vouchers.
"Employers have a very important role to play in helping parents to balance work and family life, and particularly in helping parents to meet their childcare needs," says Primarolo. "We are committed to supporting them in this and today's announcement will help to ensure that more parents have access to affordable, good quality childcare."
The question worrying HR professionals who have managed to convince their organisations to embrace the current childcare voucher scheme, is whether she is correct. Some fear the proposed changes may actually deter employers from offering vouchers altogether.
