Nanny Ofsted Registration - The Financial Benefits

Following the introduction of the Childcare Act 2006, the Government is reforming the regulation and inspections regime for childcare in England.

FAMILIES can access financial support through employer supported childcare voucher schemes and the childcare element of working tax credit if they use childcare that is registered by Ofsted or approved by the Childcare Approval Scheme (CAS) or Over 7’s Quality Schemes.

Each of these schemes are operated separately and apply a different set of criteria. The NEW arrangements will mean that all childcare in England can be registered if they meet the requirements.  Ofsted will operate 2 registers: the Early Years Register (EYR) and Ofsted Childcare Register (OCR).

From Sept 08 provision for children up to the age of 5 years will be required to register on the EYR unless exempt and provision for children aged 5 – 7 will be required to register on the compulsory part of the OCR unless exempt.

Care for the over 8’s and care for children under 8 that is exempt from registering on the EYR or the compulsory part of the OCR will be able to choose to register on the voluntary part of the OCR, if they meet the requirements.

In April 07, the voluntary part of OCR will begin. Providers of care who are not currently registered by Ofsted can be registered on the OCR, if they meet the requirements. Care that is not currently required to register is care of children aged eight and over, activity based care and care provided in the child’s own home.

Care that is registered on either the OCR or EYR will be considered eligible care for the purpose of employer supported childcare vouchers and working tax credit.

Once the voluntary part of the OCR begins the old Childcare Approval Scheme will be phased out.  The CAS will continue to take applications for the old scheme until Sept 07 and these will be valid for 12 months.

FACTS

• Under the new Ofsted register nanny will be required to have a valid first aid certificate and public liability insurance (see www.mortonmichel.com for insurance provision – circa £60 per annum)
• Nanny will also be required to confirm that she is suitable to work with children and that she has the training in the common core skills i.e has a recognised child care qualification
• The cost to be registered is £100 plus £36 for the CRB check, which must be carried out through the post office system and will incur an £8 admin charge
• The Government is subsidising the CRB check until April 08
• Nanny can be approved under the old scheme CAS until Sept 07, thereafter nanny must be Ofsted registered in order for parents to continue to receive financial support

Parents - How do I get my child care vouchers?

Under the employer supported childcare voucher scheme, families could save more than £2,000 a year on their childcare costs but there are snags.
It is operated by employers as a staff benefit, so Britain’s 3.6m self-employed are not eligible. And your childcare must be approved by the government to qualify.
Employers give their staff the vouchers, which can be used to pay for approved childcare. The vouchers are usually offered instead of part of your salary under a system known as “salary sacrifice”.
If you earned £50,000 and your employer offered vouchers worth £2,600, your salary would be reduced to £47,400. You would escape tax and National Insurance contributions (Nics) on the value of the vouchers — a saving of £1,066 if you are a higher-rate taxpayer and £858 at the basic rate.
You usually have to sign a contract agreeing to sacrifice part of your salary for a fixed period, usually a year.
How many companies offer the scheme?
About 5,500 companies with a total of 70,000 employees now offer a voucher scheme.
The number of firms offering the scheme has jumped by about a third since the government made the rules more attractive in April. Previously, workers could only get relief for Nics, not income tax.
The scheme has benefits for employers, too: they can save between £180 and £200 a year in Nics for every worker that signs up, after costs, according to Accor, Britain’s biggest voucher provider. If your company does not offer a voucher scheme, speak to your human-resources department. They will want a sufficient number of people to join to make the scheme worthwhile.
 

Can I use the vouchers to pay for any form of childcare?

Yes, pretty much. Vouchers can be used to fund nannies, childminders, nurseries and after-school and holiday clubs.
 

How does my nanny become registered?

The actual registration is £100 a year for approval and it is normal for the employing family to finance. The £100 covers administration of the registration, in addition there is a £36 charge for a CRB check which must be done through the Post Office verify system and is subject to an £8 admin charge. Nannies will also be required to have a valid first aid certificate circa £70 plus carry Public Liability insurance circa £60.
As with all new schemes, there have been some hiccups with the approvals process and families should expect it to take two to three months. See Nanny – how do I register below.
 

How will I pay my carer?

Parents can generally opt for either paper vouchers, which can be given to the person who provides their childcare and redeemed by the voucher firm for cash or a cheque, or electronic vouchers, which can be paid directly to the carer.
 

Nannies – how do I register?

Log on to  www.ofsted.gov.uk and follow the registration criteria. You will be required to attend a registration meeting and to produce evidence of your child care qualifications (ensure that your qualification is recognised – see the ofsted website) current first aid certificate, and current enhanced CRB. Registration is taking up to 2 months and cannot be backdated. It lasts for 12 months and the process must be repeated.
 

Contacts

Ofsted:  www.ofsted.gov.uk