APPENDIX C

REPORT TO A MEETING OF DUSTON PARISH COUNCIL 22nd FEBRUARY 2018

AGENDA ITEM 7 –CHILDCARE VOUCHER SCHEME

1.PURPOSE OF THE REPORT

To present Council with information regarding the adoption of a childcare voucher scheme for Duston Parish Council employees, and to ask Council to approve the recommendations.

2.BACKGROUND INFORMATION

2.1Childcarevouchers are aGovernment backed employee benefit scheme aimed at helping working parents pay for their childcare costs. The scheme allows employees to exchange up to £243 per month directly from their gross salary before tax and national insurance are deducted to pay for childcare costs.

2.2Childcare vouchers are available to both female and male employees whether they are employed on a full or part-time basis. Vouchers can be used to pay for all forms of childcare from birth up to the age of 15 (16 if the child has a disability). Employees paying the basic rate of tax make a saving of £77.76 per month or £933.12 per annum.

2.3The current childcare voucher scheme will close to new employers from April 2018. The replacement HMRC Tax Free Childcare scheme will see a reduction in benefits to employees and employers.

3. IMPLICATIONS FOR THE COUNCIL

3.1Employers who adopt a childcare voucher scheme can save up to £402 per employee per annum, with the average saving after costs being £260 per employee per annum, depending on the scheme and provider.

3.2Adoption of a childcare voucher scheme helps Duston Parish Council fulfill its obligations as a responsible employer, and would bring the Council into line with other public sector employers.

3.3Childcare voucher schemes aid the recruitment and retention of skilled staff by providing an additional work place benefit.

4. IMPLICATIONS FOR COUNCIL EMPLOYEES

4.1Savings to individual employees can be as much as £933 per annum.

4.2Savings made under these schemes can have a positive impact on employees work life balance.

5.RISK

5.1Childcare voucher schemes have become a standard benefit offered by employers, especially within the public sector. By not opting into a scheme DustonParish Council may risk losing skilled staff and limit its ability to recruit competitively.

5.2The potential to make associated savings to the staffing budget would be lost if no scheme wereadopted.

5.3The provision of any scheme would be entirely funded by savings in employer national insurance contributions, and the Council would pay per member of the scheme. In the event of zero staff take up there would be no cost to Duston Parish Council.

6.RECOMMENDATION

It is RECOMMENDED that:

a)That Council approves the adoption of a childcare voucher scheme.

b)That Council delegates responsibility to the Parish Clerk to adopt the most appropriate scheme.

Report: Justin Gleich – Parish Clerk