Childcare Vouchers
UK tax glossary · Last reviewed: April 2026
Childcare Vouchers allowed employees to sacrifice up to £243/month from salary (for basic-rate taxpayers) in exchange for employer-provided childcare vouchers. They were tax-free and NI-free, saving around £1,000/year for a basic-rate taxpayer.
The scheme closed to new members in October 2018. Existing members can continue while in the same employment. The replacement is Tax-Free Childcare: the government adds 25p for every 80p you pay (effective 20% top-up) in an online account, up to £2,000/year per child.
Working parents should compare Tax-Free Childcare against any retained Childcare Voucher entitlement. For higher earners, Tax-Free Childcare may be more generous; for lower earners with existing voucher memberships, staying on vouchers may be better.
Common questions
Can I join the Childcare Voucher scheme in 2026?
No. The scheme has been closed to new applicants since October 2018. If you were not a member before closure, you must use Tax-Free Childcare instead.
What is the Tax-Free Childcare income limit?
You (and your partner) must each earn at least the equivalent of 16 hours at the National Living Wage per week, and no more than £100,000 adjusted net income individually.
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.