Q:

What are childcare vouchers?

A:

Quick Answer

The Childcare Voucher Scheme is an initiative by the British government to help working parents benefit from tax breaks to save money on child care, according to Wikipedia.org. The Guardian reports that starting in 2015, parents can buy vouchers online to pay for child care.

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Full Answer

For every 80p parents spend, the government adds 20p, The Guardian reports. The scheme is available for up to £10,000 of child care costs per child each year, and there is no limit on how many children parents can claim.

Wikipedia.org reports that the plan is normally offered as a salary sacrifice scheme, which means that parents may give up part of their salary to obtain child care vouchers of an equal amount. The amount contributed for vouchers is not taxed, up to specified limits.

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