Childcare: Coronavirus
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of amending the rules for the childcare vouchers scheme to allow participants to receive refunds, subject to the appropriate tax and National Insurance contributions, in instances where (a) exceptional and (b) unforeseen changes in circumstances have resulted in unused balances that can no longer be spent on eligible childcare, in the context of the covid-19 pandemic.
Answered by James Murray
We appreciate the temporary closure of childcare settings during the COVID-19 pandemic may have left parents unable to use some existing Government childcare offers, including Childcare Vouchers.
Parents can seek to get a refund from their employer for their unused Childcare Vouchers. Whether particular employers offer refunds will depend on the contract between the Voucher provider, employee and employer, and is not within HMRC's control. Where a refund is not available the funds will remain in the nominated childcare account. As the Childcare Vouchers offer is now closed to new entrants and has been replaced by Tax-Free Childcare, the Government has no plans for reform.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →