What is the Childcare Support Scheme?
A monthly allowance taking the form of free childcare vouchers is available to eligible employees who are currently in the College’s childcare vouchers scheme. Please note that this scheme is now closed to new entrants – view the relevant tab to learn more about its replacement, Tax-Free Childcare.
The vouchers are provided through the College childcare voucher provider, Computershare, and may be used to meet the cost of childcare in College or independent nurseries. The allowance is not available as a cash supplement to employees’ salaries.
Who is eligible?
Every Imperial College parent currently in the childcare vouchers scheme with a child under five years of age*, other than those paying for a child in the Imperial College Early Years Education Centre (EYEC). Consequently, a parent paying for a child at EYEC would be ineligible for free childcare vouchers for a second child. If both parents are employed by the College and currently in the childcare vouchers scheme they can both apply for free vouchers*. An exception to this is where the parents have a child at EYEC, in which case only the parent not paying the nursery fees will be eligible for the free vouchers.
* Effective from September 2024, the free voucher will continue for parents who have a child under 5 who is currently in receipt of it. However, once their child reaches their fifth birthday, their enrolment in the free voucher scheme will end completely and no further children will be eligible to enrol.
How much is available?
The value of vouchers per Imperial College parent currently in the childcare vouchers scheme (and with a child under the age of 5 who is currently in receipt of it) is up to a value of £124 per month. The final payment will be made in the month of the child’s fifth birthday (the child currently in receipt of it), provided you are still employed by the College. The free vouchers will be withdrawn as soon as your child takes up a place at EYEC and/or reaches their fifth birthday.
If you are a higher rate tax payer, the amount of £124 is the maximum that can be claimed. However, if you are a basic rate tax payer you can apply for up to £243 in total, in which case the first £124 is provided free by the College, and the remainder (up to £119) will appear on your payslip as a salary sacrifice.
It is important to provide Computershare with your child’s date of birth, because this is how we know whether or not you are eligible to continue receiving the free vouchers. By registering with Computershare, you have accepted their terms and conditions, which include giving consent that the College can be supplied with your child’s date of birth and age.
How do I receive my free vouchers?
Vouchers will be credited to your Computershare account.
Do I receive the sum for each child I have?
No. Each parent who is enrolled is eligible for £124 per month (so two Imperial College parents can both claim an allowance as long as the children are still aged under five.). It is an allowance per parent rather than per child, so as to ensure that the College operates within the tax concessions available under the Government childcare voucher scheme.
The Government’s new Tax-Free childcare scheme operates on a per-child rather than per-parent basis.
I have a child in EYEC – am I eligible?
No. However, if you have applied but not yet been offered a place at EYEC, you can participate in the Childcare Support Scheme and will then be able to use your vouchers at a later date if you are offered a place (or otherwise at any independent nursery who has registered with Computershare).
Do I have to use the allowance on childcare vouchers?
Yes. The College scheme is designed to off-set the cost of tax-approved childcare. By using the workplace nurseries or childcare voucher scheme, we can provide the sum completely tax free. Childcare vouchers can be used for a whole range of private childcare.
I am not yet incurring childcare costs. Can I claim the free vouchers anyway?
No new claims can be submitted and the Childcare Voucher scheme through Computershare is only available to those already registered.
My childcare costs exceed £124 per month; can I purchase more childcare vouchers?
Any amount up to £124 per month will be funded by the College (until your child who is already currently in receipt of them reaches their fifth birthday), but parents already registered on the childcare vouchers scheme can purchase more vouchers, up to their personal tax-free limit, if they wish to do so. In practice this will only apply to basic rate taxpayers and those who had already registered with Computershare prior to April 2011 (when the law changed). In such cases, the excess over £124 will be treated as a salary sacrifice through payroll. Details of the current maximum tax-free allowances may be found on the Childcare Vouchers tab. It is not advisable to exceed these allowances as any excess would incur Computershare’s handling charge (which you will need to pay) and carries no tax benefit. It is simpler and cheaper to pay excess childcare costs directly to your childcare provider.
Does this allowance form part of my contract of employment?
The allowance is a discretionary scheme offered by the College which we will review every August and it is therefore not contractual. The allowance may be used on childcare vouchers or workplace nurseries and is tax free, so it does not have to be declared as additional income on a tax return. The arrangement is, however, part of a salary sacrifice arrangement, so please read the guidance provided by Computershare carefully so you understand the parameters of the scheme.