1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hi Guest, welcome to the TES Community!

    Connect with like-minded professionals and have your say on the issues that matter to you.

    Don't forget to look at the how to guide.

    Dismiss Notice

Childcare Vouchers

Discussion in 'Parenting' started by EulersTheorem, Aug 6, 2011.

  1. Hello,
    My baby was born two weeks ago and I'm planning on going back to work the week before we break up for Christmas, thus childcare will start in January (childminder.) The childminder accepts childcare vouchers and we will only be using her during term time. The cost of childcare will be almost £900 a month - term time. I am wondering whether to go with the childcare vouchers. My Husband's work does not do the scheme.
    Have you any ideas or thoughts or suggestions please??
    I understand the pros: pay less tax, etc. BUT the cons are that my pension will go down. Is this such a big deal though as it will only be for the next three years?
    Thank you in advance
    xxx
    [​IMG]
     
  2. Hello,
    My baby was born two weeks ago and I'm planning on going back to work the week before we break up for Christmas, thus childcare will start in January (childminder.) The childminder accepts childcare vouchers and we will only be using her during term time. The cost of childcare will be almost £900 a month - term time. I am wondering whether to go with the childcare vouchers. My Husband's work does not do the scheme.
    Have you any ideas or thoughts or suggestions please??
    I understand the pros: pay less tax, etc. BUT the cons are that my pension will go down. Is this such a big deal though as it will only be for the next three years?
    Thank you in advance
    xxx
    [​IMG]
     
  3. hhhh

    hhhh Lead commenter

    Wh knows whether we will even have pensins then, plus yu never know yu may decide t give up wrk/work part time/have more kids etc, so I personally wuld use the vuchers, but yu may want to ask a financial adviser, some do free one hour slts
     
  4. I use the vouchers. I hadn't actually realised that my pension would go down [​IMG] The way I see it though I need the money now to keep a roof over our heads and I may not even get to retirement age. I will hopefully be able to put more aside for the future once my youngest child stops needing childcare paid for. So it depends if you need that money now, or would be able to cope fine without it.
     
  5. One big advantage is if you have another baby you can claim them during maternity leave.
     
  6. If you are a basic rate tax payer you will save just over £800 a year in childcare costs. I'm not worrying about my pension at this stage (although if my and OH's calculations are correct, I'll save more per year taking the vouchers than would go into my pension even after employer contributions and even more so with the planned increases in April.) We would rather have a bit of extra cash now and be able to put some into savings for LO and also be able to afford the odd meal out with a babysitter to keep us both sane.
     
  7. Had to bump this up with some information from my county's faq's about childcare vouchers. Am sure it'd be the same everywhere else:
    Does this affect my pension?
    If you are a member of the Local Government Pension Scheme or Teachers Pension Scheme, your pension will not be affected as your pension contributions will be calculated on your pay before the value of the vouchers is deducted.
    This means that the value of the vouchers will continue to count towards your 'pensionable salary'.
     

Share This Page