Refunds denied for childcare voucher scheme

▤ Summary

Although the tax-efficient scheme closed to new applicants in October 2018, those who have already signed up are able to continue to buy the vouchers. In financial terms, if two parents contribute the maximum, vouchers could cut the cost of childcare by £1,866 a year, according to the scheme. But with childcare providers closed over lockdown, many parents have built up a surplus of vouchers they now can’t use in the future — this could be because their children are starting school in September. It has been reported that when some parents have asked employers for their money back, they have been told no. One provider Sodexo, says: ‘Refunds are not possible under salary sacrifice contracts.

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