Can I still join the Childcare Voucher scheme in 2026?

Full answer

Childcare Vouchers were a salary sacrifice benefit that let employees exchange part of their salary for childcare vouchers, saving Income Tax and National Insurance on the sacrificed amount. The scheme closed to new entrants on 4 October 2018, replaced by the government's Tax-Free Childcare scheme. **Can existing members continue?** If you were already receiving Childcare Vouchers through your employer before 4 October 2018 and have not had a continuous 52-week break from the scheme since, you can generally remain in it for as long as your employer continues to offer it and you have an eligible child (usually up to 1 September following the child's 15th birthday, or 16th birthday if the child is disabled). **Tax and NI savings from vouchers** Existing members can typically sacrifice up to £55 a week (£243/month) tax and NI-free if they are a basic rate taxpayer, with lower limits for higher (£28/week) and additional rate (£25/week) taxpayers, reflecting rules introduced in 2011 to equalise the benefit across tax bands. **Why most people can no longer join** Since the scheme closed to new joiners, the only way into it now would be if you had previously been a member, left, and are re-joining the SAME employer's scheme within the continuity rules -- brand new employees or people who have never used the scheme cannot join it at any employer in 2026. **Childcare Vouchers vs Tax-Free Childcare** You cannot be in both schemes for the same child at the same time. Tax-Free Childcare gives you a 25% government top-up (£2 for every £8 you pay in, up to £2,000 support per child per year, or £4,000 for a disabled child), which is often more generous for lower and middle earners with typical childcare costs, especially those who are self-employed (who cannot use Childcare Vouchers at all, since it requires an employer scheme). **When Childcare Vouchers still win** For some higher earners with modest childcare costs, remaining in Childcare Vouchers can be more valuable than switching to Tax-Free Childcare, particularly because Tax-Free Childcare is unavailable if either parent has adjusted net income above £100,000, whereas Childcare Vouchers have no such earnings cap for existing members. It is worth comparing both using a calculator before deciding whether to switch, since switching to Tax-Free Childcare is irreversible -- once you leave the voucher scheme you cannot rejoin.

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