Fair point, just to assure you I did check the figures I quoted in my own comment are currently valid.

Most of the companies have actually brought their costs down recently, if only a little, or have diversified their offering because of the increasing demand for all-singing all-dancing reward platforms.

In particular the scheme has changed, and we have also entered a recession, so rates will have changed and providers will have changed.

Having worked with Childcare Voucher Solutions and being a small company I actually found that they were quite willing to work with smaller companies.

To me, it sounds more like yet another classic case of ComputerShare charging smaller businesses a higher rate than larger businesses, making it less economical for the smaller employer to run a scheme.

I can't understand why any business would sign up for a salary sacrifice scheme where they are losing money by paying out more in admin than they save - not when it's widely publicised that a company is supposed to save money with a voucher scheme.

I suspect your employers are paying a heavy premium for the scheme, and can do without the excessive admin legwork foisted upon them by the aforementioned voucher sharks* so whilst I can't imagine even ComputerShare would be audacious enough to charge more than the NI saving (13.8%), your employers are probably worried about the man-hours being wasted on running the scheme, combined with the "through-the-nose" pricing, making them completely fed up with it.

And who wouldn't be? *ComputerShare, despite charging the most that any provider have ever been known to, actually make the employer do a lot of the administration related to running a scheme. Think of it as running a scheme in-house but still paying over-the-odds for a little rubbish assistance.

If the employer had opted for a scheme from KiddiVouchers for example, or Fideliti, or one of the other decent ones, they would only have had to pay a monthly invoice, and other than that, relax! KiddiVouchers, who I have worked with, charge 2.5% across the board, whether your company has 1 or 20,000 employees.

Under these circumstances, an employee ordering the full £243 per month would save the company £402 per year. This equates to about £87 per year in admin fees, which is less than half what a voucher account costs, and less than half of what P&MM charge per year (to give just one example).

Perhaps you should ask your employer to look at the market before giving up on a scheme altogether. Not all providers are totally rubbish!

I developed the scheme with my previous employers who were bought out 2 years ago. They no longer provide the scheme, as the purchasers already had a voucher scheme.

I no longer promote the scheme myself, as companies were having difficulty understanding how it worked.

If you wish I would be happy to email you some information and you can decide if it would be suitable for your requirements.

ross.dunlop@yahoo.co.uk

Therefore an employer on average saves 10% of this amount which is approx £300.00 They are likely to be charged 5% of the voucher face value. Approx £150 to £160 per year. With internal costs they may consider it to be in excess of £300 per year.

So in reality they are probably loosing money.

Hope this helps.

Ross.

Thanks

I agree it's unlikely that any really do by now.

By the way I didn't mean Fideliti's actual logo: my comment that their branding looks like TESCO's was because their website, with its blue and white colouring and hot pink circles, make you feel like you're visiting a site that has something to do with TESCO, as this (by now over-mentioned) supermarket use very similar red 'price' dots with their blue and white theme.