CHILDCARE VOUCHER SCHEME - HAS THE CAP AMOUNT CHANGED?

10
Found 18th May
Hi all,

Looking for working parents who use the childcare voucher scheme and if you have had any changes in the amount you can get? I received my last pay and found I only got £112.50 (Normally claim nearly £200) and recieved no notification why it was lowered from my employer or the voucher scheme company. Long and short and many phone calls with either party blaming each other, I found out my employer had completed a basic pay assessment and thus capped me at the amount above. I am a basic tax rate payer and to my research the caps (As listed on the Gov site) is:

Lower (20%) - £243
Additional (40%) - £124
High (50%) - £110

I see no news to any changes other than they have extended the deadline for childcare vouchers from April 18 to October 18 before they then revert to "tax free childcare".

Any help appreciated.
Community Updates
10 Comments
I get child care vouchers and not seen a problem with the amount.

Just thinking.. as you say they are capping you is it because by the time you pay the child care vouchers, pension, shares or anything else out of you pay, that it reduces it below the minimum wage? As I think it those circumstances they can stop it
Bob2460115 m ago

I get child care vouchers and not seen a problem with the amount.Just …I get child care vouchers and not seen a problem with the amount.Just thinking.. as you say they are capping you is it because by the time you pay the child care vouchers, pension, shares or anything else out of you pay, that it reduces it below the minimum wage? As I think it those circumstances they can stop it



I see what you are saying however surely the contibutions I make towards chicldcare vouchers is my choice? A bizarre one for sure.

Only deductions other than the general is just the vouchers and the pension. Civil Servant I am.
loopylloyd15 h, 25 m ago

I see what you are saying however surely the contibutions I make towards …I see what you are saying however surely the contibutions I make towards chicldcare vouchers is my choice? A bizarre one for sure.Only deductions other than the general is just the vouchers and the pension. Civil Servant I am.


So do you think all the outgoings would reduce your income below the min wage? If so then I think that might be the reason.

I know this is a pain and doesn't really make s
Common sense as the vouchers are cheaper than paying for childcare via cash, but I think it's law that they can't reduce your pay below the min wage.

If you are still above the min wage after all deductions, then I don't know what else it could be.
Bob2460117 h, 18 m ago

So do you think all the outgoings would reduce your income below the min …So do you think all the outgoings would reduce your income below the min wage? If so then I think that might be the reason.I know this is a pain and doesn't really make sCommon sense as the vouchers are cheaper than paying for childcare via cash, but I think it's law that they can't reduce your pay below the min wage.If you are still above the min wage after all deductions, then I don't know what else it could be.


I will have to calculate. However I still think it’s should be my choice but I appreciate the comment as it could be the reason... I need a pay rise then
Yeah totally agree it should be your choice, as it's saving you money, but I guess the employers hands and tied based on the law.

I also agree that the only sensible solution would be a pay rise - good luck with that conversation
National Minimum Wage must be adhered to. It is 100% illegal for an employer to reduce your take home pay below that expected from NMW.
They are trying to phase out vouchers, you can no longer join a voucher scheme, though stay in if still in one.
Might be worth investigating if the new childcare accounts work better for you.
If your childcare is only £200 a month, probably not. Though if it is much higher, then it may we be worth it.
Oneday777 m ago

National Minimum Wage must be adhered to. It is 100% illegal for an …National Minimum Wage must be adhered to. It is 100% illegal for an employer to reduce your take home pay below that expected from NMW. They are trying to phase out vouchers, you can no longer join a voucher scheme, though stay in if still in one. Might be worth investigating if the new childcare accounts work better for you. If your childcare is only £200 a month, probably not. Though if it is much higher, then it may we be worth it.


Vouchers are extended until October after parliament voted for this.

Thanks for the info, very helpful.
Bob2460158 m ago

Yeah totally agree it should be your choice, as it's saving you money, but …Yeah totally agree it should be your choice, as it's saving you money, but I guess the employers hands and tied based on the law.I also agree that the only sensible solution would be a pay rise - good luck with that conversation


I know thanks again mate.
Bob246016 h, 13 m ago

Yeah totally agree it should be your choice, as it's saving you money, but …Yeah totally agree it should be your choice, as it's saving you money, but I guess the employers hands and tied based on the law.I also agree that the only sensible solution would be a pay rise - good luck with that conversation


The problem is. As soon as you introduce a scheme that lets an employer pay less than minimum wage. The unscrupulous ones will ‘encourage’ staff to do so.
The employer would save on NI contributions. It’s amazing the lengths some will go to.
Pensions are the same for salary sacrifice, you any go below NMW.
Oneday777 h, 20 m ago

The problem is. As soon as you introduce a scheme that lets an employer …The problem is. As soon as you introduce a scheme that lets an employer pay less than minimum wage. The unscrupulous ones will ‘encourage’ staff to do so. The employer would save on NI contributions. It’s amazing the lengths some will go to. Pensions are the same for salary sacrifice, you any go below NMW.



I get your point and it makes sense and does not surpise me with some employers doing that! I think however I am still taking home more than the min wage equivelent. Before they messed up my amount recently I looked at what I took home (after vouchers at £196)... I have then compared the hours I work based against £7.83 the NMW and the amount for the min wage is lower than my take home.... I.E they still have contributions to go out.

I had a small pay rise before the NMW had gone up as well so it did make me think this may not be the reason. I have contacted HR and await their reply. Thanks for the comment as it helps me further to summarise potential reasons!
Edited by: "loopylloyd" 20th May
Post a comment
Avatar
@
    Text

    Top Discussions

    Top Discussions

    Top Merchants