Childcare vouchers and maternity pay.

[Selina13]

Hi,

Im looking for some advice from new mums who have just started or are just about to take maternity leave.

I work for local council but I have just checked maternity policy and it says nothing specifically about childcare vouchers specifically.

I dont think i get them paid for so was thinking to cancel them in preparation.

Just seeing what others did.

Any advice is appreciated as I really dont know what to do for the best. Xx

 

[Belfa]

Hi I don't know if you know how childcare vouchers work but basically it's a salary sacrifice scheme. You're perfectly entitled to ask you employer to sign up to a scheme and I haven't heard of an employer turning this down. I nearly took a new job with a very small company when I went back to work and even they offered to sign up to a scheme as it saved them money in employers contributions.

Basically you employer takes a maximum of £243 / month off your pre-tax salary and puts it in to your chosen voucher scheme (make sure this scheme is one which is approved by the child are provider you choose). You then get taxed on the remaining salary which goes in to you bank every month as normal.

TBH, its saves very little per month for me and I just do it because every little helps I suppose, plus it ensures that nursery is paid on time every month. My son is in nursery for 12 hours a week and his bill is £275 or thereabouts a month so I still have to put in to his bill too x

 

[Elspeth]

Hi Selina,

Not 100% sure this is the question you are asking but I reduced my childcare vouchers payment during the qualifying weeks for my maternity pay ( weeks 17 to 25 or something like that).
Otherwise I'm having 243 pounds taken off salary and my mat pay for the next 9 months will be less.
I felt this was worth more than the tax saving. I'm not sure whether your employer will keep paying your childcare vouchers even when your pay goes down to zero? I have heard of this happening.

Hope that's helpful in some way.

 

[Selina13]

Yeah, sorry I meant I have them currently but not sure if I should keep them going during mat leave or if employer will continue to pay them even if I have no wage. I have had another look and I think I might be better cancelling them like you say Elspeth. Its so bloody confusing and as Im not even 12wk I dont wanna ring HR and ask! X

 

[Belfa]

Oh sorry I was confused haha! I was always going to keep them going but I talked to DH last night and he said he'll take over the cost of it. Our purses are going to be very tight this time round!

 

[Selina13]

Oh sorry I was confused haha! I was always going to keep them going but I talked to DH last night and he said he'll take over the cost of it. Our purses are going to be very tight this time round!

Bloody hell tell me about it!! Your mat pay wont be calculated right if you keep the vouchers though. The impression I have got is that you should cancel them by 17th wk of pregnancy so your salary is more to bump up your qualifying weeks for mat pay?!

Is that right? Xx

 

[Alipops1986]

Oh sorry I was confused haha! I was always going to keep them going but I talked to DH last night and he said he'll take over the cost of it. Our purses are going to be very tight this time round!

Bloody hell tell me about it!! Your mat pay wont be calculated right if you keep the vouchers though. The impression I have got is that you should cancel them by 17th wk of pregnancy so your salary is more to bump up your qualifying weeks for mat pay?!

Is that right? Xx

My plan is to lower the amount to just like £20 or something small rather than stop them altogether.

I'm assuming about the 25th wk of pregnancy you can increase them again ready for when you go off on Maternity Leave?

My Husband claims £240, I can only claim £124 due to earnings - so will be continuing that hopefully on maternity leave but will reduce to £20 ish during the qualifying weeks.

Alipops x

 

[Belfa]

I didn't know any of this! Now I'm
panicking, does this affect everyone of just certain salaries?xx

 

[Babbybo]

Hi, I'm not entirely sure about this but i think it has changed. In the past the vouchers would still have been paid when your salary dropped but now they won't be. Hadn't heard about the maternity pay being affected. Surely that would be calculated on your gross which isn't affected by childcare salary sacrifice the same as any pension etc. It might be worth ringing your childcare voucher provider- mine says it answers queries on allowances etc& will give advice on what is best for you.
Goodluck. Let us know if you get any answers.