The Government caught most of us by surprise when it announced the end to childcare vouchers as we know them and extra funding for working parents.
So what do you need to know?
Well, nothing immediately. The changes won't come into effect until 2015. Thereafter here's our take on what it means for employers and employees alike:
For working parents
This is nothing but good news. If both parents work you will be better off. And you won't have to hope that your employer is signed up with one of the childcare voucher providers to benefit.
It's good news as well. Sure, you will have to extract the existing childcare voucher service from your current benefits platform but other than that it should make the benefits offering and strategy easier.
But there are some questions as well. If you no longer have vouchers you'll need to re-think where working parents and carers fit into the HR priority list and plan accordingly - and yes, we'd like to think we can help you with that.
For voucher companies
It's broadly good news as well - not least because there is suddenly a massive opportunity for the good and large providers to re-invent themselves.
Dealing with HMRC and parents directly rather than employers will bring a new set of challenges but at least margins will be safe from procurement.
For a more detailed discussion please get in touch with us.
Ben Black, My Family Care