The average UK family is unaware that they can save up to £200 a month on the cost of childcare (such as breakfast and afterschool clubs), by using childcare vouchers. Here's our parenting guide on the vouchers and how they work.

Childrcare vouchers and the UK family

Parents often mistakenly believe that support for childcare is for preschoolers only or for people on low wages, and partly because the scheme is still not as widely publicised as it could be.

In the current financial climate, many parents - both mums and dads - are taking on full-time employment to ensure that they are able to cover their increasing monthly outgoings. The fact that each parent can claim a saving toward the cost of childcare can be a huge help.

The facts

1) The childcare voucher scheme allows parents to claim up to £55 per week or £243 per month in vouchers to use to pay for a wide range of childcare.

2) It works by deducting this amount from your salary and then repaying it to you in the form of funds that are not subject to tax or national insurance payments.

3) You therefore end up paying less tax on your annual salary, making a saving of £80.19 per month (£962.28 per annum) as a 22 per cent tax-payer and £99.63 (£1195.56 per annum) for a 40 per cent tax-payer.

4) The vouchers can be used for any registered or approved childcare for children from the ages of 0 - 15 years (or age 16 if the child has a disability).

5) This includes day nurseries (private, community or local authority), workplace nurseries, childminders, pre-school playgroups, nursery schools, after-school clubs, holiday clubs, and nannies.

6) Parents can elect to take the same value of vouchers each month or they can change their voucher value as they need to up to a maximum of £243 per month.

7) Parents can receive their vouchers from via email or mail to their home address each month or each week.

8) A parent can then choose to either email the voucher on to their carer (the person or organization providing the extra childcare) or print it and hand it to the carer directly. The carer then redeems the voucher with the voucher scheme provider.

9) Some providers offer an automated service where as soon as the voucher is paid for by the employer the money is paid straight into the carer's bank account.

10) To take advantage of this your employer needs to register for the scheme. One well established provider that can offer you further information is Early Years Vouchers Ltd, tel: 0845 0945 805 5377 or visit www.childcare-vouchers.net

Related Articles:

If you're looking for more information from MyFamilyUK's parenting guide, we think you'll like the following articles.

Parenting Guide: Making a Will

Parenting Guide: Maternity and Paternity Leave

Parenting Guide: The Secret to a Successful Family Road Trips

Parenting Guide: 10 Tips For Helping Your Kids Plan a Day Out