Childcare Voucher Scheme
Northern Ireland Assembly Commission
3:00 pm
Peter Weir (DUP)
It seems to be my turn today. I thank the Member for his question. The payroll system in use to process salary payments for Members and their staff does not fully support the operation of an integrated childcare voucher scheme that would be recognised by Her Majesty’s Revenue and Customs. The exercise to procure and install a new payroll system, which will facilitate the administration of such a scheme, is at an advanced stage, and it is anticipated that the system will be fully tested and operational before the end of this financial year, ie, by 31 March 2013. The introduction of a new payroll system will not, in itself, remove the requirement on a Member to establish a HMRC-compliant childcare arrangement. That can only be done by a Member in consultation with HMRC.
Roy Beggs (UUP)
I thank the Member for his answer. When I pressed the issue some 10 years ago, we were told we could not have the scheme because of the outdated Assembly payroll system. Why is it going to take a further nine months before a new system is introduced? The Civil Service has had such a system for a number of years.
Peter Weir (DUP)
I suspect that people have not been just as visionary as you, Mr Beggs, in pressing for this change. All I can say is that none of us can deal with what has happened in the past. There is a process in place that will bring this about for the next financial year. Hopefully, that is something that will be fully operational. It may well be something that should have happened a long time ago, but I can only give the Member the assurance that it is happening now.
Peter Weir (DUP)
We are looking at the financial situation to make sure that everything is cost-efficient. I can get some more detail to the Member. There is still a requirement on Members to make sure that the scheme that they have in place for their staff is compliant with HMRC. At present, the childcare payment is subject to tax and national insurance and Members would be required to pay the employer’s national insurance contribution, but we try to make sure that everything is as compatible as possible. We will provide the Member with a more detailed answer to her supplementary question.
Chris Lyttle (Alliance)
Could the implementation of the childcare voucher scheme for MLAs and Assembly Secretariat staff save as much as £240,000 a year for the public purse, and will it be taken forward?
Peter Weir (DUP)
I am not in a position to comment on the savings that could be realised. We will look to see what is the most efficient system. We also have to realise that we are dealing with public money. We must ensure that we get the best value for public money and that the system that we use is compliant.