Help us to protect the benefits of Childcare Vouchers
The Proposal
At the recent Labour Party Conference, Gordon Brown proposed the staged removal of all tax and NIC exemptions related to Employer Supported Childcare. The announcement, in the context of childcare vouchers, refers to two separate changes, at different dates.
March 2011: Parents who are not already receiving vouchers from their employer at that time would not be able to join a scheme
31st March 2015 the Government’s proposal is tax and NI exemption would be removed completely.
This means that:
1. Employees who began their contractual right to receive childcare vouchers prior to 31st March 2011 will continue to enjoy the exemptions on vouchers provided to them (under the same contract) up to 31st March 2015 – so now is the perfect opportunity to encourage uptake of the scheme to allow as many working parents to benefit as possible
2. Employers who provide childcare vouchers to an employee under a related contract of employment which was initiated or modified after 31st March 2011, will not be in a position to apply the current tax & NIC exemptions to that childcare vouchers benefit.
3. An employer may introduce a childcare voucher scheme at any point between now and 31st March 2011 and an employee may choose to receive childcare vouchers at any point between now and 31st March 2011 to enjoy the exemptions until 31st March 2015
This information is based on the assumption that this Government announcement will actually take effect as opposed to being abandoned due to adverse public opinion and/or the forthcoming general election. More information is expected in the pre-budget report which is likely to fall on the 9th December.
With this in mind, for employers, the most important thing to do is to continue to run your scheme as you do today and advise your staff that it is currently “business as usual.”
Now, more than ever, is the time to take the opportunity to encourage additional take up of the scheme so everyone can make the most of the current savings available. We can assist with every aspect of a re-launch and ongoing promotion of your scheme.
Parents can modify their contract of employment in respect of childcare vouchers until 31st March 2011, and can continue to enjoy the financial benefits until 31st March 2015 so now is the perfect time to join!
The Campaign
Accor Services created the first Childcare Voucher scheme in 1989, recognizing the prohibitive cost of childcare and supporting the cause of allowing parents to afford to go to work. We lobbied the government for the tax exemption that exists today and in recognition of the valuable financial support that the scheme offers to working parents, we have formed a coalition with the other leading childcare voucher providers to continue lobbying the government to challenge these proposals.
There has already been great success –
- A group of influential senior MPs, including 9 former members of the government, have written to the Prime Minister to express their concern about his decision
- An Early Day Motion has been put to Parliament to recognise the many benefits of childcare vouchers
- A petition on the Number 10 Downing Street Website has attracted more than 80,000 names – making it the most popular petition on the website http://petitions.number10.gov.uk/keepvouchers
There has been a great deal of press coverage supporting the campaign including the following:
“Gordon Brown warned: axing childcare vouchers will cost Labour seats”, Guardian, 11.11.09
“Ex-ministers warning to Gordon Brown over childcare plans”, Daily Telegraph, 11.11.09
“Ending childcare vouchers will stop many families from working”, The Times, 12.11.09
“Gordon Brown does U-turn over childcare tax break", The Times, 15.11.09
It is all about you, your employees and their childcarers! The success of the scheme has been fuelled by the numerous financial, practical and emotional advantages for all 3 parties.
With this in mind, we would gratefully appreciate any support that you would like to offer our campaign. We are confident that with the support of our clients, the whole childcare industry, and parents alike that we can overturn this ill-conceived proposal.
If you would like to support our campaign there are three main ways you can help:
1. Sign the petition – currently the largest petition on the Number 10 website with over 80,000 names and growing daily, this is likely to have a huge influence on any future policy! You can read and sign the petition at: http://petitions.number10.gov.uk/keepvouchers/
Where appropriate, please encourage colleagues, friends and family to do likewise!
2. Write to your MP – The Early Day Motion put to Parliament, shows that many MPs are already adverse to the changes.
Find your local MP link below.
http://findyourmp.parliament.uk/
When writing to any MP the address to use is:
House of Commons, London, SW1A 0AA.
Alternatively most MPs now have email addresses which you can find at the same site.
Employers may wish to write to:
Rt Hon Lord Mandelson, Secretary of State for Business, Innovation & Skills, 1 Victoria Street, London SW1H 0ET
3. Contact us with your comments at expressopiniononccv@accorservices.co.uk. Testimonials to the importance of Childcare Voucher schemes from our clients, current beneficiaries of the scheme and their carers, would prove invaluable for us when lobbying the government to retain tax & NIC exemptions related to employer supported childcare.