Childcare Vouchers, interesting discovery

[busymum]

Everyone probably already knows this but just incase not, I thought I'd circulate a message.....

I recently discovered by accident that my employer was legally obliged to pay allsave childcare contributions for me whilst I was on maternity leave, and I don't have to pay it back (some change in maternity law Oct 08 regarding company benefits I think?). I was paying in the maximum amount of ?243 each month and didn't opt out of the scheme when I went on maternity leave as my toddler was staying at nursery. I'm taking the full year off and they have paid all my contributions during this time, it's over 2k!

Your employer may have forgotten to tell you.

[littleEDfamily]

Absolutely brilliant!!

[ryedalema]

Sorry - am being totally thick (i blame maternity leave head). Do you mean that my employers should be paying for my childcare vouchers? If so is that only if they only pay statutory mat pay or is it regardless. My work is giving me an 'enhanced mat pay' package for 19.5 weeks (then back to the statutory). So should I ask them to pay my ?243 each month also?

[jrthomas_uk]

Quote from www.personneltoday.com

Childcare vouchers and salary sacrifice during maternity leave: The true cost of childcare vouchers

"They want to know the financial risks," says Morris. "We tell them that once a new mother stops receiving maternity pay - and is still on maternity leave - the employer will have to pay the full cost of the voucher. Only now are some employers cottoning on to the full costs of offering childcare vouchers."

So it seems the Employer is only liable for the cost of the vouchers once maternity pay ceases.

[busymum]

I think I have a fairly typical maternity package. I get 3 months at full pay and then I go down to SMP. Whilst I was on full pay my vouchers were paid through salary sacrifice as normal, but now I am on SMP my employer has to pay them for me. An employer is not allowed to make deductions from your SMP, but you are entitled to receive your company benefits whilst you're on maternity leave, and allsave vouchers might be 1 of your benefits. I'm no expert but I imagine 1st time mums could start claiming as soon as their child is born, you are allowed to do this if you have a ofsted registered childcarer in mind, probably putting your baby down on a nursery waiting list would be OK, you can change and add carers on-line.

My employer was horrified they had to pay all this for me, poor things.......

I've got a few Mum freinds who have since left to have their 2nd baby, they all work for companies who offer allsave vouchers as a benefit and they are all getting them paid for by their employers whilst they are away.

[Gimme]

I've been told that it depends whether your childcare vouchers are part of your 'benefits' or paid for out of your salary.

If you ask your employer to provide childcare vouchers in lieu of salary, I'm told that your employer doesn't have to pay them (in the same way they don't have to pay your salary). If however, they are part of your benefits package then they do have an obligation to keep providing your benefits during maternity leave.

[ryedalema]

Ah I think I see. I've got Accor vouchers which I'm paying for by salary sacrifice (not part of a benefits package). So my work won't do anything differently for me during my mat leave will they? I'll just keep paying for them as normal (well until Gordon Brown takes them away from us of course!).

[busymum]

Hi Ryedalema

I also pay allsave vouchers by salary sacrifice usually, the fact that we are offered a voucher scheme by our employers makes it a 'benefit' (if in reality it just saves us a bit of tax and NI each month!) however whilst you're on maternity leave on SMP and also unpaid AML your employer must pay it for you.

Or so I've been told!

Hope this helps