What are the rules about employees no longer being able to join the childcare voucher scheme from 5th October 2018?

From 5th October 2018, the childcare voucher scheme is closed to new joiners. The only childcare support available to parents is Tax Free Childcare (TFC), a government scheme (for information go to www.childcarechoices.gov.uk).

Key facts - membership

• For new members, September 2018 payroll was the last chance to join the childcare voucher scheme.
• Employees currently in the childcare voucher scheme can temporarily cease their deduction. They have a 12-month window to re-join the scheme provided they did not join TFC in the meantime.
• Employees who have been in the scheme within the last 12 months, but are currently not receiving vouchers, will have until 11 months after their deductions stopped to re-join, provided they did not join TFC in the meantime.

Key facts - general

• Post October 2018, an existing childcare voucher member will be able to vary their voucher amount in the same way they have always been allowed to.
• Childcare vouchers are per parent whereas TFC is per child, therefore both parents need to be in the same scheme.
• Organisations can continue to switch voucher providers if they require.
• If an employee changes employer after 4th October 2018 they will classed as a leaver to the childcare voucher scheme and will not be allowed to join their new employer's scheme.
• Employees can use up the balance of any monies remaining in their childcare voucher account, irrespective if they have joined TFC.
• TUPE
• Where a change of employer is triggered by a business merger or acquisition, employees who were in the childcare voucher scheme prior to 4th October, can remain in the voucher scheme post 4th October 2018.
• This also applies where there is a transfer of staff under a COSOP (in the public sector) or TUPE arrangements.
• However, the same treatment will not apply where there has been a formal change of employer through an intra-group transfer.