Backlash on childcare vouchers

Could Gordon Brown's plan to phase out childcare vouchers cost him the next election? Have your say

Gordon Brown's plans to phase out childcare vouchers could cost him the next election, ex-ministers have warned him in a letter.

Proposals to scrap the scheme, which is worth up to £2,400 a year to working parents to help pay for childcare, have proven unpopular.

The money will instead be spent on a new scheme targeted at nursery places for two year olds. Critics, which include many normally loyal Labour MPs, say hard working families will lose out and are calling for a rethink.

The scheme involves sacrificing part of your salary in exchange for "vouchers". About 300,000 parents take part in the scheme, which was introduced in 2005.

Employers

It is estimated that just under one-in-five employers now offers it. The "vouchers" are handled in an electronic account by a third party provider and are then paid to any allocated registered child carer from au pairs to nurseries.

Mothers and fathers can both commit up to £243 of their salary each month. For employers there are also bonuses.

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