Code of practice to promote the excellence in childcare vouchers

Following a recent consultation, the UK’s leading childcare voucher providers are to use findings to inform a Code of Practice, which will establish voluntary industry standards and promote high quality of service across the sector.

Childcare vouchers are seen as a successful means of promoting employee engagement, motivation and productivity and are popular with both parents and employers. The consultation revealed that childcare providers also view vouchers positively, with 43% of respondents rating them as an ‘extremely valuable’ income stream.

Opinions expressed via the consultation painted a favourable picture of the voucher scheme, with the scheme’s guaranteed income for nurseries and its appeal to parents seen as particular advantages. In total, 61% of consultees were either ‘satisfied’ or ‘extremely satisfied’ with the service offered by their childcare voucher providers and many of the responses consolidated the already positive reputation enjoyed by the scheme amongst employers. 

However, it was also clear that there is room for improvement and the providers are aware that in order to strengthen the vouchers model, guidelines will need to be developed, particularly to safeguard clients’ money, and to support childcare providers by providing clear accessible information and transparency over payments.  

The voucher providers have all welcomed the results of the consultation, and will use its conclusions to build on current good practice.  A Code of Practice will be launched this autumn, overseen by a new representative body for the childcare voucher industry.  

Speaking on behalf of the childcare voucher companies, Simon Moore, Managing Director of Busy Bees Childcare Vouchers, said: “All the companies involved in this process are keen to ensure high standards are consistently applied across the sector. We have a common interest in promoting excellence in the delivery of childcare vouchers, and are pleased that this consultation demonstrated that childcare providers, parents and employers alike do value the scheme. We look forward to continuing to work collectively through the new Code of Practice when it is launched later this year.”

Purnima Tanuku, Chief Executive of National Day Nurseries Association, commented: “Childcare vouchers are a positive benefit for families, and our members recognise the value of them. However, there have been unintended consequences for childcarers from the administration of voucher schemes. These consultation findings reflect feedback from members around how improved matching of payments to children would help them, and we welcome the forthcoming Code of Practice which we hope will help iron out such difficulties. NDNA looks forward to the publication of the code, and will be highlighting how it is essential that both voucher providers sign up and that there are routes to address any breach of the code.”

Key points from the consultation:

• 68% of respondents considered vouchers to be either valuable or extremely valuable as an income stream
  
• 21% of respondents stated that up to 30% of their income is received through vouchers
  
• 61% were satisfied or extremely satisfied with the service from their voucher provider
  
• Only 6% stated they were very unsatisfied with the service they had received
  
• 61% rated the administration of the scheme as either easy, or very easy
  
• Greater use of electronic payments would be keenly supported by 75% of the sector
  
• In 62% of cases, it was considered that voucher providers communicated either well or very well with childcare providers