Lichfield-based Busy Bees Corporate Childcare Vouchers, which currently has 16 staff, is set to move into larger premises and grow to 50 full-time workers by the end of the year.
David Thackray, who runs the voucher division, said, 'We expect our business to grow four-fold in this year alone. We are already recruiting to cope with this increasing demand and look to move to our larger premises after Easter.'
He added, 'Government legislation means that corporate childcare vouchers are exempt from national insurance contributions. People can make savings of up to one month's free childcare every year - making them a very valuable benefit for working parents.'
With the one per cent NI increase this month, working parents earning between the NI thresholds of 75 per week and 585 per week exchanging a portion of their salary for childcare vouchers will save NI contributions equivalent to 10 per cent of their childcare costs.
Busy Bees managing director John Woodward said that the company's voucher business had doubled in each of the past three years, before recent NI rises and the Treasury consultation proposing vouchers as a non-taxable benefit.
'We had planned to dramatically increase our voucher business before all this. All these latest developments have done is reinforce it,' he said.
The other major player in the corporate voucher business, Accor Services, is also preparing for expansion. National sales manager Anne Ross said NI increases, coupled with moves towards vouchers as a non-taxable benefit, could 'open the floodgates'.
She said the introduction of an electronic system, similar to telephone or internet banking, which has been up and running since January, meant that expansion of the business did not necessarily entail major recruitment of new staff.