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Tax free childcare scheme vs childcare vouchers

Which is better for parents Tax-free Childcare Scheme or childcare vouchers?

 

Many parents are asking the question as to whether they will be better off moving to the new Government tax-free childcare scheme or staying with their existing childcare voucher scheme? The tax-free childcare scheme was launched seven weeks ago and has since caused nothing but problems for both parents and childcare providers. Therefore it is being advised that parents who have already joined a childcare voucher scheme with their employer are better off staying with this rather than moving to the new tax-free childcare scheme.

Parents have been unable to access their accounts and pay their childcare providers, their money is sat in their account but is unable to access it., therefore childcare providers are not being paid for the service which has been offered. In some cases, parents are being issued with late payment charges, which again isn’t their fair. 

Problems are continuously being reported about the childcare service from both parents and childcare providers. In some cases, chidcare providers are having difficulties registering with the scheme and have had to contact the technical support team on several occasions to ask for help.

There are plans to stop employers offering employees the option of joining their childcare voucher scheme next April, this move, however, would see some employees being worse off financially.

Many parents at present use childcare vouchers to pay for childcare, it is being urged if parents are already in a childcare voucher scheme they may be better off stopping with the scheme rather than moving to the new tax-free childcare scheme, which at present is having many technical problems

We would like to hear from anyone who has experienced issues with this new tax-free childcare scheme.

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