Tax breaks on childcare voucher schemes are likely to be among the measures announced by the Chancellor today in his pre-budget report.

Although 40% of employees have dependent children, currently only one in ten employers help their staff with childcare, according to a report by Daycare Trust, the childcare charity. However, three-quarters of parents say that they cannot find enough childcare to return to or enter the workforce.

In 1998, the Government launched its National Childcare Strategy designed to significantly reduce child poverty by 2020, improve early years’ provision and aid parents, especially mothers, to work and earn.

Daycare Trust, is hopeful about the added boost to help working families. “We believe tax breaks on childcare voucher schemes will enable more parents return to and remain in the workforce by making childcare more accessible and affordable,” said Stephen Burke, Daycare Trust Director.

Alison Cantle, Childcare Director at Sodexho Pass, a childcare voucher supplier, said implementing a childcare voucher scheme is cost neutral to employers and the initiative will encourage support for all working parents. “If implementation takes place in April, lots of families will benefit from tax free childcare.”

Cantle is anticipating a surge in demand for childcare vouchers from working parents putting pressure on HR directors. “For employers, tax-free childcare vouchers are a strong means to encourage parents back to work, or encourage parents who are considering leaving to stay,” she said. “Sensible and clearly defined tax breaks will lead to a win-win situation for all,” she added.

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