Childcare Voucher survey reveals true impact of scheme closure

The Childcare Voucher Providers Association (CVPA) has revealed the negative impact caused since closing the Childcare Voucher scheme in 2018.Childcare Vouchers Providers Association

CVPA conducted a survey of parents, employers and childcare providers. 

The survey looks at the impact since the closure and comparison to Tax-Free Childcare (TFC). 

Some findings include: 

  • 46% of parents prefer Childcare Vouchers vs 5% that prefer TFC
  • Nearly 50% of nurseries reported increased admin burden supporting parents with TFC 
  • More than 60% of parents found the system problematic, unclear and confusing.

NDNA have consistently recommended their Childcare Passport proposal to help reduce admin and give parents more control than the current system. 

Purnima Tanuku OBE, Chief Executive of NDNA, said: “This survey shows how popular Childcare Vouchers were with parents and providers. The scheme put parents in control and was straightforward for nurseries.
 
“Tax-Free Childcare (TFC) is in a £600 million underfunding crisis, much lower than expected, due to low take-up of the scheme. Recent issues in the TFC system have shown that it still needs investment to make sure it works for everyone. 
 
“We believe that parents and families should be at the heart of childcare policies. Our childcare passport idea would mean all support, whether funded hours, TFC or other benefits, go into one account which parents can use to pay the provider of their choice.
 
“Our childcare passport would simplify and reduce the admin burden for providers, ensure more resources are put directly into early years work and allow parents the freedom to choose how they best utilise the Government's support for their child.”

Find out more information and read the report here