EY Childcare Vouchers are a big help to UK parents
We all know that school holidays are an expensive time, but a recent report estimates that parents in the UK are set to spend £8.6 billion over the summer holidays with £3.2 billion of that going on childcare.
With an era of austerity upon us parents are tightening the purse strings and forgoing a family holiday altogether in order to help make ends meet.
The Cost of a Child Report from the LV= calculates that parents will spend on average £110 per child per week during the average 6-week summer break, with nearly half (49%) of parents saying they will need to pay for childcare.
To combat the rising costs one in ten will be relying on family, including grandparents, to look after their children for free. But what help is available to parents who do not have this as an option?
Childcare Vouchers are available to working parents through their employers to help with childcare costs. Your employer allows you to take part of your gross salary in the form of childcare vouchers. The allowance you can take is based on the rate of tax you pay. Childcare voucher allowances are tax and National insurance exempt, which means savings of up to £1,866.24* each year for a family
Childcare Vouchers can be used to pay for most forms of registered childcare including, most importantly, holiday clubs. Director of Early Years Vouchers, Amanda Ward, said "I use childcare vouchers to pay for my daughters summer holiday as well as before and after school clubs. It's a valuable benefit for working parents who don't have the option of free childcare available".
To contact Early Years Vouchers call 0800 088 7315 or visit www.childcare-vouchers.net
For more information on the LV= Cost of Child Report visit http://www.lv.com/media_centre/press_releases/cost-of-raising-a-child
*based on both parents being 20% taxpayers
LG July 2011