Voucher firms look to set industry-wide standards
Three of the largest childcare voucher companies in the UK are planning to put in place industry-wide standards.
Busy Bees Childcare Vouchers, Sodexho Pass and Grass Roots, which runs the Care4Voucher brand, are launching a month-long consultation this week to gather views from childcare organisations, nurseries, employers and parents, on how to improve the way vouchers are administered.
It will look at issues raised by childcare providers, such as guaranteed payment times, the reconciliation process, information for providers and other administrative problems. It will also look at how best to protect parents' money. Childcare voucher companies are unregulated and the current economic crisis has led to concerns about how parents' money would be protected should one of the voucher companies go under.
Feedback from the consultation will inform guidelines for a voluntary code of practice for voucher companies. An association would be set up to oversee the code, which would act as a 'quality mark' for the sector.
An independent auditor would 'police' the scheme to ensure voucher companies operate within the guidelines.
Iain McMath, managing director of Sodexho Pass, estimated there were around 35 voucher companies in the UK.
'We're seeing an increase in take-up of childcare vouchers in the recession as some companies choose to give their employees more benefits rather than increase wages,' he said. 'We want to encourage best practice and felt it would be far better to have a clear level of expectation of service.'
Mr McMath said he envisioned that the association would be set up this summer.
The consultation runs from 27 April to 29 May. For a copy, e-mail info@westminsteradvisers.co.uk.
