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The new Tax-Free Childcare (TFC) scheme - an alternative to childcare vouchers - is being rolled out by government from early 2017.

Whilst some families may be better off with TFC, many will not. So we're here to help your employees understand the differences between TFC and childcare vouchers, so they can make the right choice for their family.

There are a number of eligibility criteria but, assuming a family is eligible for both schemes, a general rule of thumb is that childcare vouchers may be better for smaller families / families with lower childcare costs, and TFC better for larger families / families with higher childcare costs.

However, working parents can't switch back and forth between the two schemes, as their childcare needs change. Families who register for TFC can't switch to childcare vouchers at a later date, but parents who are registered for childcare vouchers can switch to TFC.

The childcare voucher scheme will close to new entrants in April 2018, but it will remain open for those parents already taking childcare vouchers, and who want to continue taking them (for as long as they remain eligible).


You'll continue to benefit from Employer's National Insurance (NI) savings as long as your childcare scheme operates, even after TFC launches in 2017.

We're committed to managing your scheme for as long as you have employees registered on it. We'll help you drive uptake before the April 2018 cut-off date, and also help you keep parents on your scheme as long as it is beneficial to them (which will help save you money too!).

For more information, videos and news updates please click on the icon below.

The government's Childcare Choices website and Check what help you could get with childcare costs calculator are also useful resources for parents.