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Can I have more than £243 of vouchers?
No. The University will only provide vouchers up to a value of £243. This is the maximum value of vouchers which are tax and National Insurance free.
If you joined the scheme on or after 6 April 2011, you will only be able to claim the maximum amount allowable based on an assessment of your earnings, the monthly amounts being:
• Basic rate - £243 (earnings less than £35,000)
• Higher rate - £124 (earnings between £35,001 and £150,000)
• Additional rate - £97 (earnings over £150,000) |
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How is the Basic Earnings Assessment carried out?
Your basic earnings are calculated based on your basic pay (plus any shift allowances), minus your personal tax allowance and any other tax free benefits (such as pensions or salary sacrifices).
The Basic Earnings Assessment is calculated for all staff who join on or after April 6 2011, and is then recalculated at the start of every subsequent tax year. The calculations are carried by the Department of Human Resources. |
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My pay has changed since the Basic Earnings Assessment was carried out, does my entitlement to vouchers change?
| Not immediately. The Basic Earnings Assessment is carried out when you join the scheme and at the start of every subsequent tax year. If your pay changes part way through a year, this change will be reflected in the next Basic Earnings Assessment that is carried out. |
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I was in the scheme before 6 April 2011, how many vouchers can I claim?
| You will be able to claim £243 of vouchers, regardless of how much you earn. You can continue to claim up to £243 until you leave the scheme or the University. If you want to temporarily receive no vouchers, you can reduce your order to £0 and retain your entitlement to £243, as long as the temporary reduction is not for a period longer than 12 months. |
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Can I receive paper vouchers?
| No. The University only issues electronic vouchers. |
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How do I change the amount of childcare vouchers I receive each month?
| To change the voucher amount you receive you should log in to your online account and complete an Amendment of Terms form. If you want to temporarily receive no vouchers, you can reduce your order to £0 and retain your entitlement to £243, as long as the temporary reduction is not for a period longer than 12 months.
If you are unable to log in to your online account, please call the Edenred help desk on 0800 247 1233 and they should be able to provide you with your account details.
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How do I cancel my childcare vouchers?
| To withdraw from the childcare voucher scheme you must log in to your online account and complete an Amendment of Terms form – indicating that you would like to terminate your agreement. If you want to temporarily receive no vouchers, you can reduce your order to £0 and retain your entitlement to £243, as long as the temporary reduction is not for a period longer than 12 months.
If you are unable to log in to your online account, please call the Edenred help desk on 0800 247 1233 and they should be able to provide you with your account details.
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When is the deadline each month for joining Pay Plus for childcare, amending my order or leaving the scheme?
| You must join the scheme, or make any amendments by the last working day of the month. The changes will be effective from the next month. |
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What happens if I do not use all my vouchers straight away?
| Electronic vouchers do not have an expiry date, so they will remain in your account until you need to use them. |
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What effect will childcare vouchers have on Working Tax Credit or Child Tax Credit?
If you are claiming tax credits, please refer to your local Working Tax credit office, as to any possible impact.
You can also use the Tax Credit Estimator, offered by Accor Services to help calculate the implications of Childcare Vouchers on Working Tax Credit and Child Tax Credit. This is available from the box on the right, and the Childcare Vouchers Scheme ID is UNIV8326. |
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Will taking childcare vouchers affect my maternity pay?
| Calculating maternity pay is complex. Pay Plus for childcare will affect these calculations and the amount the University can claim back from the government but the University will ensure that the amount you receive will not be less than the amount you would have received had you not been in Pay Plus for childcare. |
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Does Pay Plus for childcare affect adoption pay?
| The University will replicate current practices, so you will be no worse off as a result of participating in Pay Plus for childcare. The qualification rules for adoption leave and adoption pay are complex. If you are considering, or going through an adoption placement, please contact the Human Resources Department for further advice. |
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I am on maternity leave, can I join Pay Plus for childcare?
| According to the Equality Act 2010, employees are entitled to continue to receive the contractual benefits during maternity leave they received immediately prior to that leave. If you were not in receipt of the contractual benefit of Pay Plus for childcare immediately prior to your maternity leave, the University is not obliged to provide this benefit during your maternity leave. Due to this, and the related costs of providing childcare vouchers to you during maternity leave, you won’t be able to join Pay Plus for childcare until you return from maternity leave. |
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I am on maternity leave, and already participating in Pay Plus for childcare, can I amend my order?
According to the Equality Act 2010, employees are entitled to continue to receive the contractual benefits during maternity leave they received immediately prior to that leave. The University is not obliged to increase this benefit during your maternity leave. Due to this, and the related costs of providing childcare vouchers to you whilst you are maternity leave, you won’t be able to increase your Pay Plus for childcare order during maternity leave. You can decrease your order if you wish, but you will only be able to increase it back up to the level it was at immediately before your maternity leave.
The legislation does require the University to continue providing the contractual benefit throughout your maternity leave, even during times when your salary cannot be reduced. This means that during periods when you are receiving Statutory Maternity Pay (SMP) only, you will be getting childcare vouchers for nothing, as the University is not permitted to reduce your pay below the SMP level. |
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My child is too old for nursery, does this mean I cannot claim childcare vouchers?
| Childcare vouchers can be used to pay for childcare for children up to the age of 15, or 16 if they have a disability. They can be used to pay for breakfast clubs, after school clubs, and holiday clubs and are for more than just nursery or pre-school care. |
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What salary can I quote when arranging a mortgage or a loan?
| You can quote your pre reduction salary i.e. your salary before any reduction due to Pay Plus. This will be shown on your payslip. |
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Does Pay Plus for childcare affect pay increases?
| All pay increases including National Pay Awards, increments and Exceptional Contribution Awards will be based on your pre reduction salary. All of your pay related benefits will also be calculated using this amount. |
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If my salary is being reduced how will I be able to check that my overtime etc has been worked out correctly and paid to me?
| Your salary, before the Pay Plus reduction, remains on your payslip for reference, and overtime etc continue to be based on this figure. |
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What effect does participating in Pay Plus for childcare have on the Universities Superannuation Scheme or the University of Sheffield Pension Scheme?
If you are a member of the Universities Superannuation Scheme or the University of Sheffield Pension Scheme, your pension contributions will be calculated based on your salary before any Pay Plus reduction. The salary before Pay Plus reduction will also be used to calculate Death In Service benefits, and for calculating your pension at retirement.
The rules for the NHS Pension Scheme are slightly different and are explained in the next question. |
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I am an NHS Pension Scheme member. Can I participate in Pay Plus for childcare?
Yes, you can participate in Pay Plus for childcare, and make savings on the amount of tax and National Insurance you pay. However, the rules of the NHS Pension Scheme require that the pensionable salary of staff participating in a salary sacrifice scheme, such as Pay Plus for childcare, is reduced by the amount of the benefit provided. Pensionable salary is the salary on which your pension contributions and pension benefits are based. Participating in Pay Plus for childcare has an effect on the following areas:
Death in Service benefits
Pensionable salary is used to calculate your Death in Service benefits, so if you participate in Pay Plus for childcare, this will reduce the level of benefits payable on death.
Pension transfer values
Pensionable salary is used to calculate the transfer value of your pension, so if you are considering transferring your pension to another scheme, and are participating in Pay Plus for childcare, your reduced salary will affect the value of your transfer value.
Pension at retirement
Pensionable salary is used to calculate the amount of your pension when you retire, so if you are planning to retire within the next three years, and are participating in Pay Plus for childcare, your reduced salary will affect the value of your pension. |
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Does participating in Pay Plus affect the amount of State Pension I receive?
No, in most cases Pay Plus does not affect your State Pension. The State Pension is based on the number of years for which you have been paying National Insurance, not how much National Insurance you have paid. So if your pay is above the Lower Earnings Limit, you are considered to be paying National Insurance and are entitled to the State Pension.
If your salary is below the Lower Earnings Limit, you do not make National Insurance contributions and, therefore, this will have an effect on your State Pension. The salary reduction caused by participating in Pay Plus for childcare may take your salary below the Lower Earnings Limit. Details of the current Lower Earnings Limit can be found from the link on the right.
The State Second Pension (S2P) does depend on the value of National Insurance contributions made by an individual, but if you are a member of the Universities Superannuation Scheme or the NHS Pension Scheme, you are contracted out of S2P and so make no contributions to it. If you aren’t a member of one of these schemes, including if you are a member of the University of Sheffield Pension Scheme Flexible Retirement Plan, your S2P contributions will be reduced by participating in Pay Plus for childcare. |
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Will Pay Plus for childcare leave me worse off if I am on long term absence (for instance sick leave or study leave)?
| No, you will not be any worse off. |
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Does Pay Plus for childcare affect student loan repayments?
| If you are repaying a student loan through payroll, your student loan repayments may be reduced slightly as a result of participating in Pay Plus for childcare. This is because your repayments are calculated based on your pay which is subject to National Insurance contributions, which is reduced under Pay Plus for childcare. You may wish to seek independent financial advice if you are unsure of how these changes may affect you. |
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Does Pay Plus for childcare have any impact on payments to the Child Support Agency (CSA)?
Child maintenance payments to the CSA are calculated with reference to your net income i.e. your pay after the deduction of pension contributions, tax and National Insurance. Under Pay Plus for childcare your net income increases because you are paying less National Insurance and your child maintenance payments may therefore increase as a result.
If you participate in Pay Plus for childcare you should notify the CSA of the change in your net income immediately. Contact details for the CSA and further details of possible effects can be obtained from the link on the right to the CSA’s website. |
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I am over the state retirement age and therefore do not pay National Insurance. Can I participate in Pay Plus for childcare?
| You can participate in Pay Plus for childcare. Although you will not make a National Insurance saving, you will make a saving on the amount of income tax you pay. Also, your department or research project will benefit from a reduction in employer National Insurance. |
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I pay National Insurance at the reduced married women’s National Insurance rate. Can I participate in Pay Plus for childcare?
| You still make National Insurance savings from participating in Pay Plus for childcare but your savings are based on these rates. |
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How are the employer savings used?
| Pay Plus for childcare results in a reduction in staffing costs for internally and externally funded staff. The savings for internally funded staff are available to departments. The savings for externally funded staff remain in project budgets. |
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Will the reduction in staffing costs created by Pay Plus for childcare lead to staffing budgets being reduced in future years?
| No. A staffing budget for one year will not be reduced as a result of the Pay Plus savings from the previous year. Pre reduction salaries will be used for costing research projects. |
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