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Tax-Free Childcare error preventing parents' fees being paid to providers

Early years providers have been left out of pocket due to an error with the Tax-Free Childcare scheme that has prevented payments from being transferred from parents’ accounts.
NS&I has confirmed there is a problem processing Tax-Free Childcare payments, PHOTO: Adobe Stock
NS&I has confirmed there is a problem processing Tax-Free Childcare payments, PHOTO: Adobe Stock

National Savings & Investments (NS&I), which administers Tax-Free Childcare along with HRMC, told Nursery World it is ‘aware of a delay to payments due on 2 April’ and apologised for the inconvenience caused.

It added, ‘We are working on resolving this issue and payments will be sent out to providers as soon as possible.’

HMRC said there were ‘no issues’ its side.

While NS&I was unable to confirm how many early years providers are impacted by the delay to payments, a number have taken to social media to say they are awaiting money, with some wondering if the bank holiday is to blame.

Commenting on the Champagne Nurseries Facebook page, childminder Emma Bush said, ‘I have four parents that paid last Thursday (28th March), and still no payment through. It has left their account and isn’t in mine. Surely three days after the bank holiday it should be in my account?

Another provider said her parents had to chase their payments with Tax Free Childcare, which had ‘got lost in transit’.

A third provider said that her parents had to re-send their payments.