Childcare

Childcare is highlighted as an important aspect of flexible working within Improving Working Lives (IWL).

Since it was launched in 2000, the NHS childcare strategy has supported the needs of all NHS employees. This has been achieved by offering those NHS staff with childcare responsibilities:

• more flexible ways of working to help them achieve a better work-life balance
• providing essential advice on finding, and paying for, the childcare they need to fit around their working lives.

On-site nurseries will not meet everyone's needs and other forms of childcare may be more appropriate for staff with childcare responsibilities. For some, combining work and family can be difficult if they work for an organisation that delivers care 24 hours a day, 365 days a year. It is important that staff are aware of the variety of childcare options that are available to them through the trust, Sure Start or private providers.

Accessing high-quality childcare and affordable childcare is key to maintaining work-life balance and an integral part IWL. Employers can support their staff in a variety of ways:

• providing information and guidance on the Government support available, for example the tax credit system, voucher schemes and where to go for advice
• reviewing their working practices, for example moving towards family-friendly policies and flexible working options
• supplying information on, and liaising with, the location of local nurseries and childminders
• where possible, providing on-site nurseries or Private Finance Initiatives (PFI) to provide nursery places locally.

• Current situation
• Childcare vouchers
• Changes to Sex Discrimination Act and Parental Leave Regulations in 2008
• More information

Current situation

The majority of strategic health authorities have a childcare co-ordinator. All NHS staff, including GPs and their staff, have access to a childcare co-ordinator in their local health economy. The emphasis is now shifting to other forms of support for working parents such as after-school clubs, holiday play schemes, childminding networks and childcare vouchers.

Many trusts are now working with external childcare providers within the local health economy, wider community and private sector to provide support for staff with children between the ages of five to 16. More trusts and local authorities are also now addressing staff needs and are providing holiday play schemes and both before and after school clubs. See more information (below) for a list of websites that provide information and guidance on childcare issues.

Back to top

Childcare vouchers

Childcare vouchers are another way of supporting staff in paying for childcare that can be offered in addition to salary but are more commonly offered as a 'salary sacrifice'. This means that a specific amount of salary is replaced by childcare vouchers.

From April 2006, childcare vouchers up to the value of £55 per week (£243 per month) are exempt from tax and national insurance - they are only paid on the reduced level of salary received. This can save employees on standard rate tax between £916 and £962, and up to £1,195 per year for higher-rate tax payers, whilst employers could save around £370 per year for each employee on childcare vouchers. Each employed parent can claim the exemptions, and a two-parent family could potentially save up to £2,392 per annum depending on individual circumstances.

For more information on childcare vouchers go to the Daycare Trust website.

For more information on the rights for people with childcare responsibilities, as well as childcare vouchers, go to the Working Families website.

Back to top

Changes to Sex Discrimination Act and Parental Leave Regulations in 2008

Changes to the Sex Discrimination Act and Parental Leave Regulations which came into effect in October 2008 increase the length of time that employers must provide childcare vouchers to employees on maternity leave. This change also applies to other forms of employer supported childcare - including directly contracted childcare and workplace nurseries.

For babies due on or after 5 October employees are entitled to continue receiving childcare vouchers for weeks 1 to 26 (Ordinary Maternity Leave or OML) and then for weeks 27 to 52 (Additional Maternity Leave or AML).

For those in salary sacrifice schemes it should be noted that Statutory Maternity Pay (SMP) cannot be reduced by a salary sacrifice. It must be paid in full for 39 weeks. Any Contractual Maternity Pay above the level of SMP will be subject to salary sacrifice. Even if the scheme does not involve salary sacrifice employees are still eligible to continue receiving vouchers and the employer is liable for the costs.

Failure by employers to comply with the new legislation will leave them open to a claim of sex discrimination under the Equal Pay Act or the Maternity and Parental Leave Regulations. The regulations extend parallel changes to employees taking additional adoption leave.

A full copy of the recent legislative changes can be downloaded from the Office of Public Sector Information. Guidance relating to Salary Sacrifice schemes is available on the HM Revenue and Customs website.

Back to top

More information

www.daycaretrust.org.uk - national childcare charity providing information for parents, childcare providers, employers, trade unions, local authorities and policy makers.

www.workingfamilies.org.uk - UK's leading work-life balance organisation who help and give a voice to working parents and carers, while also helping employers create workplaces that encourage work-life balance for everyone.

There will be a national Carers information service/helpline for carers as part of the New deal for Carers which is expected to be in place from autumn 2008 more information is available on the Department of Health website.