What if I am in an Employer Supported Childcare scheme?
The Employer Supported Childcare (ESC) scheme will be closed to new applicants once Tax-free Childcare is introduced.
However, if you are already in an ESC scheme when this happens, you will be able to choose to remain in it or to move to the Tax-free Childcare scheme.
You will not be able to be in an ESC scheme for one child and the Tax-free Childcare scheme for another.
You will need to consider which scheme you would be better off in.
This will depend on factors such as:
For example; if you are a lone parent with one child and you are receiving the maximum support through an Employer Supported Childcare scheme for a basic rate tax payer, you will be saving a maximum of £933 per year. If you were to join the Tax-free Childcare scheme, you would be saving a maximum of £2,000 per year.
Remember the Tax-free Childcare scheme offers savings per child per year, whereas the Employer Supported Childcare scheme offers savings per parent per year.
Gov.uk will be launching a Childcare calculator in Autumn 2016 which will allow you to compare the schemes.
We recommend you seek advice from a benefits expert before making a decision. You can use the Turn2us Find an Adviser tool to find a local one.
Updated August 2016