To ask the Chancellor of the Exchequer, if he will ensure that his Department provides compensation for unused Kiddicare vouchers to parents whose children no longer require childcare.

Childcare vouchers are a contractual arrangement between the parent, employer, and voucher provider. The Government is not party to these arrangements and the availability of a refund will depend on the precise terms and conditions of the employer’s scheme.

While some voucher schemes allow for refunds in certain circumstances, this is not a legal requirement.

Where an employer or provider does offer a refund, any refund is treated as income from employment and subject to deduction of tax and National Insurance contributions in the normal way.