CIPP response to Tax-Free Childcare: consultation on childcare account provision
30 June 2014
The CIPP have submitted a formal response to the Tax-Free Childcare: consultation on childcare account provision.
The consultation has run for five weeks and closed on 27 June 2014. It looked to gather views on the issues and assessments, on options to deliver tax-free childcare accounts, along with the proposal for government to provide a single childcare account for employees through National Savings and Investments (NS&I) or within HMRC.
Recognising that under the tax-free childcare regime there is to be no mandatory role for the employer, but that employer involvement is being encouraged and enabled, CIPP published a small survey, in partnership with the Chartered Institute of Personnel & Development (CIPD), which looked to establish views from members and employers on their openness to providing support to their employees by offering a net pay deduction process and paying over the deductions to the childcare accounts.
We believe that for employers who wish to support their employees in this way, the childcare account should provide security, simplicity of operation and consistency.
The proposal that a single government backed provider in the form of National Savings & Investment (NS&I) using its existing infrastructure does offer this potential.
Additionally, when asked directly, 80 percent, who currently plan to provide assistance or have yet to decide whether they will provide assistance to their employees, would prefer to deal with a single account provider.
Our response can be read in full here