Thousands miss out on childcare aid

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Despite the fact that 90% of out of school clubs and holiday schemes accept childcare vouchers as payment, 20% of schemes said they did not have a single parent who used them, according to voucher provider Busy Bees.

Research carried out by the group at 200 holiday schemes found that even where providers said people were using the vouchers, it was still typically only one or two parents.

Parents who work for participating companies are able to receive part of their pay in childcare vouchers, with the cost of the vouchers deducted from their salary before tax and National Insurance is paid.

The vouchers can then be used to pay for any type of registered childcare, saving parents an average of up to £100 a month, or £2,392 a year if both parents receive them.

The savings come at a time when research by the Daycare Trust showed that the average cost of holiday clubs has soared by 8% during the past year to £87.43 a week.

Busy Bees said the main reasons providers gave for parents not using the vouchers was that many did not know how they worked, while others assumed they could only be used for pre-school childcare.

Another reason given was that employers did not offer their staff the chance to join the scheme.

Iain Beadle, sales and marketing director at Busy Bees, said: "Saving money this summer has become a priority for many families, as the cost of living continues to rise.

"As Childcare Vouchers can be spent at holiday scheme, parents who need to use childcare during the summer don't have to compromise on quality or depend on a family members to keep their costs down."