The Childcare Voucher Providers Association (CVPA) has published a Code of Practice for its members, which so far include Computershare Voucher Service, Edenred, Employers for Childcare, Faircare, Grass Roots Group, and Sodexo Motivation Solutions, to encourage industry-wide standards.
The Code also sets out what parents, employers and childcare providers can expect from members of the CVPA and a complaints procedure if members fail to comply with the appropriate standards.
Fiona Shields, chair of the CVPA, said, 'The establishment of the CVPA will help ensure the successful and effective continuation of the childcare vouchers scheme and its role in developing a vibrant and diverse childcare sector.'
The launch follows concerns that childcare voucher companies are unregulated and fears about how parents' money would be protected should one of the voucher companies go under. It also aims to address issues raised by childcare providers, such as guaranteed payment times, the reconciliation process, information for providers and other administrative problems.
Members of the CVPA are required to have a fund protection policy to guarantee the delivery of funds to nurseries and childminders. Using a member company will provide settings with a guaranteed payment for their services.
Collectively, the members of the CVPA process more than 80 per cent of the transactions in the childcare voucher sector.
Purnima Tanuku, chief executive of the National Day Nurseries Association, said, 'We welcome the launch of the CVPA and we hope it will help remove some of the common issues in the current voucher system. The CVPA sets out the minimum standards that parents and childcare providers can expect and we hope that voucher companies will accept the CVPA as an industry standard and work to ensure that they meet these.'
Further information
The Code of Practice can be seen at www.cvpa.org.uk