Numi Kent
The longstanding Childcare Voucher Scheme in the UK—offered as a salary-sacrifice tax break for working parents—will end completely in April 2026.
Though closed to new joiners since 4 October 2018, existing participants can continue only while eligible and with the same employer.
This change means UK families must reassess their childcare funding, make the most of current vouchers, and prepare to transition to Tax‑Free Childcare (TFC) before the deadline.
Timeline & Key Dates
| Date | Event |
|---|---|
| 4 Oct 2018 | Scheme closed to new participants |
| Apr 2026 | Final withdrawal date – vouchers end even for long‑standing users |
| Now–Apr 2026 | Transition period – apply for Tax‑Free Childcare & maximise benefits |
What Parents Need to Know
1. Who still qualifies?
You can continue receiving vouchers if you:
- Joined before 4 October 2018
- Stay with the same employer running the scheme
- Don’t take unpaid leave longer than 12 months
- Do not switch to Tax‑Free Childcare
Once you switch to TFC, you lose access to vouchers.
2. How much can you save?
Depending on income tax band:
- Basic-rate: up to £55/week (£2,915/year)
- Higher-rate: £28/week (£1,484/year)
- Additional-rate: £25/week (£1,325/year)
These were tax- and NIC-free contributions while the scheme was active.
3. Why switch to Tax‑Free Childcare?
TFC offers a 20% government top-up on childcare costs—up to £2,000/year per child (£4,000 if disabled) For many families, this delivers greater value.
Steps to Take Before April 2026
- Calculate savings: Compare current voucher benefits to TFC using online childcare calculators.
- Monitor eligibility: Maintain salary-sacrifice contributions and stay with the same employer.
- Register early for TFC: Especially important for families approaching the cutoff date.
- Review employment changes: Changing employers, taking long leave, or applying for TFC will end voucher eligibility.
- Plan finances: Budget for the shift and any shortfall over the next year.
Navigating the Transition
- Overlap allowed: You can use remaining vouchers while starting TFC—just inform your employer within 90 days of applying.
- No reversal: Once you switch to TFC, you cannot return to the voucher scheme .
- Employer support: Talk to HR early about the scheme wind-down and any company timelines.
With the Childcare Voucher Scheme ending in April 2026, UK parents must act now. Evaluate current benefits, register for Tax‑Free Childcare, and plan around employment changes.
By starting the transition early, families can ensure continued, uninterrupted support and avoid financial shocks next spring.
Reach out to your employer’s payroll team or visit Childcare Choices for tailored advice and use live calculators to optimise your childcare funding today.
FAQs
Can I still use vouchers after April 2026?
No. The scheme ends for all by April 2026, regardless of your start date.
What if I switch jobs before 2026?
Joining a new employer means you can’t continue—a new entrant isn’t eligible. You can still spend any unused vouchers.
is Tax-Free Childcare always better?
Often—but check your circumstances. TFC offers up to £2,000/year per child, while vouchers benefit basic-rate taxpayers up to £2,915/year, though with different tax implications.