Our Policies Maternity Policy
Foreword 3 Introduction 3 Section 1: Becoming a mum The Process 4 Section 2: During your pregnancy - Support in initial months of pregnancy 5 - Antenatal Care 5 - Risk Assessments 5 Section 3: Maternity Leave - What leave are you entitled to 5 - When can you start you leave 5 - Who needs to be notified of your pregnancy 5 - What contact will you have during maternity leave 6 Section 4: Maternity Pay - Statutory Maternity Pay 6 - Maternity Allowance 6 - Company Maternity Pay 7 - Participating in salary sacrifice schemes 7 Section 5: Holiday Entitlement - What holidays will you accrue 8 - When can you take your leave 8 - What happens if you return part-time 8 Section 6: Benefits - Impacts on terms and conditions 8 - Shift allowance and contractual overtime 8 - Company Vehicles / Car Allowance 8 - Pay for Performance (Bands 4 6) 8 - Annual Incentive plan (Bands 1 3) 9 - Mobile phones 9 Section 7: Regular Deductions - Pension Contributions 9 - Hospital Funds / Union Subscriptions 9 - Private Medical insurance 9 - Fuel provision 9 - Car loan 9 - Cycle to work scheme 9 - Water Saver 10 - Leeds Credit Union 10 - Childcare vouchers 10 Section 8: Returning to work - Informing your manager of return date 10 - Transferring some of your maternity leave to your partner 10 - Right to return to existing role 11 - Notifying your manager of your decision not to return to work 11 - Requests to change working arrangements 11 Section 9: Unforeseen events - When things do not go to plan 11 Section 10: Childcare - Childcare Vouchers 12 - Information on childcare 12 - Time off for childcare 12 Section 11: Useful information and contacts 13 2
Becoming a Mum Maternity Fact Pack Foreword The Kelda Group recognises the importance of maintaining a healthy work-life balance and is committed to treating all pregnant employees fairly and consistently. A woman should not be treated less favourably because she is pregnant, absent on maternity leave, or for any other reason connected with her pregnancy or maternity. This applies equally to all employees (including fixed term contracts), regardless of the hours they work or their length of service. The following company maternity provisions meet and in some respects significantly exceed the normal statutory entitlements. These provisions apply to all employees of Kelda Group Ltd and its wholly owned group companies. Introduction This is a simple and user friendly guide to everything you need to know about maternity leave and work. Your manager, along with HR will support you every step of the way. The pack clearly outlines the benefits you are entitled to; during your pregnancy, whilst you are on maternity leave and when you return to work. After reading through the pack if you have any questions that have not been answered please do not hesitate to contact your Business Unit HR Team or your manager. Maternity Entitlement at a Glance Key timescales Inform your line manager that you are pregnant as soon as you feel able to. By the 15 th week before your expected week of childbirth (EWC) you must confirm in writing to your manager:- - that you are pregnant; - your expected date of childbirth; - when you would like to commence your maternity leave. Provide HR with your MATB1 as soon as possible. The earliest you can start your maternity leave is 11 weeks before your expected week of childbirth (EWC). You can start your maternity leave and pay on any day of the week. If you wish to change the date you commence your maternity leave you must give 28 days notice in writing. HR will write out to you 15 weeks after the birth of your baby to ask you to confirm in writing your return date. If you wish to return to work earlier or later than planned you must give 8 weeks notice in writing. Main Benefits All pregnant employees are entitled to 52 weeks maternity leave. Dependent on your service you may be entitled to a maximum of 18 weeks at normal pay and a further 21 weeks at a statutory rate of 136.78 per week. During your first 26 weeks of maternity leave you will continue to receive all contractual benefits as normal with the exception of salary. During the second 26 weeks of maternity leave you will continue to receive all non cash contractual benefits. Statutory Rights / Entitlements Under UK laws, as a pregnant employee you have the following statutory rights / entitlements:- 52 weeks maternity leave. 39 weeks statutory maternity pay (should you meet the qualifying criteria). Paid time off for antenatal care. To request up to 10 keeping in touch days during your maternity leave. To return to the same role or a suitable alternative following maternity leave. The right to request flexible working on your return to work. Priority for alternative employment if a redundancy situation arises. Protection from dismissal, detriment or discrimination because you are pregnant. 3
Section 1: Becoming a mum The Process The chart below guides you through the different steps to the maternity process. During your pregnancy and maternity leave you will be fully supported each step of the way by your manager and the business unit HR team. It is expected that your manager will maintain regular communication with you during your pregnancy and during your maternity leave. The flow chart below highlights the essential meetings that are recommended, as a minimum, to take place. It may be that you and your manager meet on a more regular basis through informal 1:1 s. Step 1 Step 2 Inform your manager in writing of your pregnancy Your manager will arrange a risk assessment and discuss the next steps No later than 15 th week before EWC Step 3 HR will contact you to discuss your maternity entitlements Step 4 Step 5 Step 6 Send your MATB1 form to HR Your manager will arrange a meeting with you to discuss your maternity leave HR will write to you confirming your entitlements Step 7 Payroll will confirm by post details of your maternity pay Step 8 Commence Maternity Leave Step 9 HR will write out to you after 15 weeks to ask you to confirm in writing the birth of your baby and to confirm your return date Step 10 Step 11 Your manager will meet with you to discuss your future plans and to give work updates Return to work Step 12 Your manager will meet with you to welcome you back 4
Section 2: During your Pregnancy It is important that you let your manager know as soon as you feel able to do so, that you are pregnant. This will help us to provide you with all the support you need at this important time and also to make sure that we are doing all we can to ensure a safe working environment. I am suffering from morning sickness will my manager allow me to work flexibly during this initial period? The early weeks of pregnancy can sometimes leave you feeling tired and you may suffer from morning sickness. If you have difficulty attending work, you should discuss this with your manager and it may be possible for you to agree to work more flexibly during this period e.g. coming in later but making the time up at the end of the day. Can I have time off for antenatal care? Yes, regardless of length of service you are entitled to reasonable time off for antenatal care paid at your normal rate of pay. This includes appointments with the midwife or attendance at parent craft classes. You should be prepared to show your appointment card to your manager. If you work flexi-time you will not be required to reschedule your appointment if it is within core time. Any time taken off should be inputted into SAP as authorised absence. Will my manager need to carry out a risk assessment? Yes, there is a legal requirement for employers to assess the risks in their workplace that might harm any of their employees, and to do what is reasonably practical to control such risks. The risk assessments must include risks specific to new and expectant mothers. When you inform your manager in writing that you are pregnant, a risk assessment will be carried out. Before you return to work, you must inform your manager if you are breast feeding, as a further risk assessment may be required. After a risk assessment has taken place you may have to avoid carrying out certain tasks, or be offered suitable alternative work until your maternity leave commences. Section 3: Maternity Leave How much leave am I entitled to? Every employee regardless of their length of service is entitled to take up to 52 weeks maternity leave. This 52 weeks leave is made up of 26 weeks Ordinary Maternity Leave (OML) and 26 weeks Additional Maternity Leave (AML). It is entirely up to you how long you decide to take, apart from one exception. For Health and Safety reasons you must take a compulsory minimum period of 2 weeks maternity leave following the birth of your child. When will my leave start? The earliest you can start your maternity leave is 11 weeks before your expected week of childbirth (EWC). This is the date your baby is due and is found on your MATB1 certificate, which will be given to you by your midwife when you are around 21 weeks pregnant. It is up to you when you decide to commence your maternity leave. You can start your maternity leave on any day of the week and can start at any time up to the birth of your baby, providing you are medically fit to continue working. If you become ill with a pregnancy-related illness within 4 weeks of your EWC, the company will automatically start your maternity leave after the 1 st day of absence, even if you are only absent for one day. If your baby is born early, your maternity leave will start from the day after the birth. Who do I need to inform and by when? It is really up to you how early on in your pregnancy that you inform your manager. However, the latest date you need to inform your manager by is the 15 th week before your baby is due (when you are around 25 weeks pregnant). By this date you need to have informed your manager in writing of the following;- that you are pregnant (if you haven t already done so); the expected week of childbirth (the week your baby is due); the date you would like to start your maternity leave and pay; 5
your intention to return to work where appropriate and an agreement to repay any company enhanced maternity pay should you fail to do so; in addition, you will also have to give HR your maternity certificate (MATB1). You can change your mind about the date you wish to start your maternity leave provided you give your manager a minimum of 28 days notice, in writing, of the new start date. The 28 days begins from whichever is the earlier of; either 28 days before the date you originally intended to start your leave or 28 days before the new date you want to start your leave. If you aren t planning to take the full 52 weeks maternity leave, you must inform your manager of the date you will be coming back. You can change your mind later on as long as you give your manager 8 weeks notice of the change in date. What contact will I have with my manager during my maternity leave? Before you commence your maternity leave you should agree with your manager what kind of contact you will have with them during your maternity leave. For example, how do you want to be told about changes happening at work or about new job vacancies? Keeping in touch can help make it easier for both you and your manager, when it is time to return to work. You are not obliged to attend work or any events such as training courses during your maternity leave, but if you both mutually agree you can work up to 10 days during your maternity leave period. These are known as keeping in touch days (KIT) and do not impact on your statutory maternity pay or maternity leave. These days can be taken in a block or may be split up over the maternity leave period. If worked, your Statutory Maternity Pay (SMP) will be enhanced so that you will receive one days normal pay for each full (KIT) day worked. N.B. If you work a KIT day whilst receiving enhanced company maternity pay (i.e. full pay) you will not be entitled to receive any additional payment or time off in lieu for each day worked. Section 4: Maternity Pay Maternity Pay comprises of two elements; Statutory Maternity Pay (SMP) and Company Maternity Pay (CMP). Details of these are provided below. Statutory Maternity Pay (SMP) Statutory Maternity Pay (SMP) is paid for up to 39 weeks. The company pays it to you and then claims a proportion of it back from HM Revenue and Customs (HMRC). SMP is classed as earnings and will be subject to tax, national insurance and pension deductions. You will qualify for SMP if:- You have worked for the company continuously for 26 weeks by the qualifying week, which is the15 th week before the week your baby is due; and You receive on average at least 109.00 (before tax) per week in earnings (the lower earnings limit). This figure is subject to review each April and has been updated for April 2013. You will receive:- 90% of your average weekly earnings during the first 6 weeks. The remaining 33 weeks will be paid at a standard rate of 136.78 or 90% of average weekly earnings if they are less than 136.78 per week. (The rate of Statutory Maternity Pay is subject to review each April and has been updated for April 2013). If you do not intend to return to work after the birth of your baby you will still be entitled to receive SMP from the company and will not be required to make any repayments. If I do not qualify for Statutory Maternity Pay (SMP) what is available? If you do not qualify for SMP you may be eligible to receive Maternity Allowance (provided that you earn 30 per week or more.) Payroll will inform you if you do not qualify for SMP and will give you a SMP1 form explaining the reason. You will need to send this form to your local Jobcentre Plus / Social Security office. 6
Company Maternity Pay (CMP) Company Maternity Pay is enhanced maternity pay that is paid in addition to SMP. If you qualify for SMP you will be eligible to receive CMP. You will receive:- For the first 18 weeks in addition to SMP, you will receive Company Maternity Pay which is calculated as the difference between SMP and your normal salary (or your reference salary if you participate in a salary sacrifice scheme). SMP for the remaining 21 weeks at a standard rate of 136.78 or 90% of average weekly earnings if they are less than 136.78 per week. If you do not return to work for a minimum of 18 weeks following the birth of your baby, CMP must be repaid (SMP does not have to be repaid). Therefore if you are unsure of your intentions, you can elect to receive SMP only and if you return to work CMP will be paid to you on your return. For colleagues who return on reduced hours the period which they need to return for will be increased proportionately. For example, if you returned part-time, working 18.5 hours per week, you would be expected to work for a minimum of 36 weeks. If you are unable to attend work upon your return e.g. you have commenced a further period of maternity leave or are absent due to sickness, this will count towards the required minimum 18 weeks return to work period. Maternity pay can start any time after the 11 th week before the EWC, until the birth of your baby. If your baby is born early or you are required to commence your maternity leave earlier than expected, then your maternity pay will start the day after the birth or the date you start your maternity leave. How will my maternity pay be affected if I participate in a salary sacrifice saver scheme? If you participate in a salary sacrifice scheme e.g. Pension Saver, Water Saver or Childcare Saver, then your Company Maternity Pay will be calculated on your "reference" (pre sacrificed) salary levels. This will prevent any reduction in your overall Company Maternity Pay for the initial 18 weeks through participating in a salary sacrifice scheme. Provided that your weekly earnings (before going on maternity leave) exceed 150.50 (using 2012/13 rates) there will also be no reduction in your fixed rate Statutory Maternity Pay for the remaining 21 weeks. If you choose to take Statutory Maternity Pay only (e.g. you intend not to return to work after your maternity leave) this will be calculated on your earnings during the 8 week period, which commences 23 weeks prior to your expected week of confinement. Statutory Maternity Pay is payable partly as a variable element and partly as a fixed element (see below). Calculation of SMP Variable element of SMP The variable element of Statutory Maternity Pay is paid for the first 6 weeks of maternity leave. It is paid as 90% of your earnings and this is calculated based on average weekly earnings i.e. earnings after the salary sacrifice adjustment - post saver salary. It is therefore possible that the variable element of your Statutory Maternity Pay could be affected by your participation in a salary sacrifice scheme. Standard fixed element of SMP The standard fixed element is payable after the first 6 weeks for up to 33 weeks at a standard fixed rate of 136.78 per week (2013/14 figure). Participation in a salary sacrifice scheme will not affect your entitlement to the fixed rate of Statutory Maternity Pay unless your average pre-tax weekly earnings (after any salary sacrifice) during the period used to calculate these payments is less than 150.50 (using 2012/13 figures). Maternity is a lifestyle event which means you can opt-out of the Saver Scheme if you want your SMP to be based on your reference (pre-saver) salary. If you choose to opt-out of the salary sacrifice scheme this should be done at least 23 weeks before your expected week of confinement. 7
Section 5: Holiday Entitlement How many holidays will I accrue while on Maternity Leave? You will continue to accrue your holiday entitlement as normal during OML (first 26 weeks) and during AML (second 26 weeks). If you are full time, you will accrue your normal holiday entitlement and will accrue time off in lieu for any bank holidays that fall within your maternity leave period. For example, if your annual leave entitlement is 25 days, you will accrue 25 days in a 12 month maternity leave period and typically will accrue 8 bank holidays in lieu. If you are part-time your holiday entitlement will be calculated as normal and will be inclusive of bank holidays. When can I take my annual leave? Holidays may be added to the beginning or the end of maternity leave. You should ensure that where your maternity leave spans two financial years that you have used your full entitlement before 31st March of that year. It is at the discretion of your line manager, to carry annual leave over into the next leave year. What happens if I return to part time hours? If you return to work on a part-time or job-share basis your annual leave will be accrued on a pro-rata basis from the date of return and will be calculated in hours rather than days. Your manager and the HR team will discuss with you in detail the changes to your contractual terms and conditions. More details on part-time working are available on HR Online. Section 6: Benefits How will it impact on my terms and conditions? During the whole 52 weeks maternity leave you will continue to be an employee and there will be no break in service. During OML (first 26 weeks) you will continue to receive any contractual benefits that you normally receive e.g. company car, health care, contractual annual leave etc, except for remuneration i.e. salary. In addition, during AML (second 26 weeks) you will continue to receive all non cash contractual benefits. What will happen to my shift allowance / contractual over time? If you receive any contractual payments on top of your basic salary, for example contractual over time or shift allowance, these will be included in the calculation of Company Maternity Pay (CMP). You will continue to receive these contractual payments throughout OML (first 26 weeks) on top of the SMP payment. What will happen to my company vehicle? If you have a company vehicle (either Reward User or Business Needs User) you will continue to receive this benefit throughout your maternity leave period. If you receive a cash alternative instead of a company vehicle please see below. If you make a contribution towards your company vehicle you will continue to make contributions until nil pay is reached. You can then choose to:- a) return the vehicle to Fleet; or b) retain the vehicle and arrange to repay any outstanding contributions accrued during any period of nil pay when you return to work. To find out more information please contact Fleet on 75 2254 or externally on 01274 692254. When will my car allowance stop? If you are in receipt of a car allowance (as an alternative to a company vehicle) you will continue to receive the allowance throughout OML (first 26 weeks). The allowance will be included in the calculation of normal salary and will not be paid during any period of AML (second 26 weeks). What will happen to my company van? If you have a company van, you will be required to return it on the day you commence your maternity leave. For more information please contact the Fleet Department on the number detailed above. Pay for Performance (Bands 4 6) Before you commence your maternity leave, your manager will meet with you to review your performance for the past quarter. For the first quarter you go on leave, a performance award of achiever will be payable as long as your previous quarterly assessment was at least achiever. In the second quarter of ordinary maternity leave, you will receive the same quarterly award as the previous quarter (i.e. achiever award or nothing). During your 8
additional maternity leave (second 26 weeks) you will receive no quarterly awards. Upon return to work, you will be eligible to receive a performance award once you have worked at least 2 months of a quarter. Annual Incentive Plan (Band 3 and above) Before you commence your maternity leave, your manager will meet with you to review your performance in the business plan year to date. While on maternity leave you will receive a performance bonus, based on an 'achieved' assessment for the period of ordinary maternity leave, as long as you were assessed as 'achieved' before you started maternity leave. No performance bonus will be paid for any period of additional maternity leave. Mobile Phone Bills If you have a work mobile phone and intend to use it for personal use during your period of maternity leave, you must make appropriate arrangements to reimburse the company for these calls. You should ask your manager to provide you with copies of your phone bill on a monthly basis, so you can arrange payment by cheque to cover your personal calls. Cheques should be made payable to Kelda Group Ltd and should be sent to Kelda Payroll with details of the payment. Section 7: Regular deductions What happens to the regular payments / deductions from my salary? Pension Contributions If I do not participate in Pension Saver You will continue to pay pension contributions while you are receiving any maternity pay (both SMP and CMP). During periods of no pay, a gap in pensionable service may apply unless you arrange to pay contributions directly to ensure continuity of pensionable service. Alternatively, payroll can arrange to collect the arrears of contributions from you upon your return to work. The Pension team can provide further information on extension 75 4133 or externally on 01274 804133. If I participate in Pension Saver If you participate in Pension Saver, pension contributions will be paid by the company for the full period of OML and AML unless you choose to opt out of the scheme under the lifestyle change rules. For more information please refer to the Pension Saver Q & A s that are available on HR Online. Hospital Funds/Union Subscriptions Payments will continue to be deducted from your salary until nil pay is reached. Once nil pay is reached you will need to make alternative arrangements for payments to be made. Private Medical Insurance (Band 3 and above) Cover will continue during the period of maternity leave and deductions will continue until nil pay is reached. Any payments which have not been made will be made upon return to work. Fuel Provision through Company credit card (Band 2 and above) This will continue to be provided during the period of maternity leave. Water Saver If you participate in Water Bill Saver, you will continue to receive free water and sewerage services from the company unless you choose to opt out of the scheme under the lifestyle change rules. Water Bill Saver payments are different to other deductions as they are paid through salary sacrifice and cannot be offset against Statutory Maternity Pay (SMP). While you are in receipt of company maternity pay, you will continue to participate in Water Bill Saver as normal (as a salary sacrifice). Once you commence receiving SMP only, the company will continue to provide your Water Bill Saver payments for you for the duration of your maternity leave. For more information please refer to the Water Bill Saver Q & A s that are available on HR Online. Leeds Credit Union If you have savings products with Leeds Credit Union, deductions will continue until nil pay is reached. If you would like to review these payments during your maternity leave please contact payroll for more information. Childcare Vouchers You will continue to receive childcare vouchers during your maternity leave unless you choose to opt out of the scheme under the lifestyle change rules. Childcare vouchers are different to other deductions as they are paid 9
through salary sacrifice and cannot be offset against Statutory Maternity Pay (SMP). While you are in receipt of company maternity pay, you will continue to receive childcare vouchers as normal (as a salary sacrifice). Once you commence receiving SMP only, the company will continue to pay your childcare vouchers for you (even though you are not sacrificing salary), up to a maximum of 243 per month (dependent on your maximum eligibility under the childcare voucher tax rules) for the duration of your maternity leave. On returning to work please contact Payroll to arrange for the re-commencement of any voluntary deductions which had been suspended. Section 8: Returning to Work When do I need to tell my manager when I will be returning? Before you commence maternity leave, you must inform your manager when you will be returning to work if you don t intend to take the full 52 weeks. This will allow your manager to plan ahead and ensure resources in the team are managed effectively in your absence. Following the birth of your baby HR will write to you asking you to confirm the date of birth and to confirm your return date. The actual date you return to work can be changed at any time during maternity leave provided you give 8 weeks notice. If you fail to give 8 weeks notice, the company could postpone your return for up to 8 weeks. The latest day you can return to work is 52 weeks after commencing maternity leave. Can I transfer some of my maternity leave and maternity pay to my partner? If you return to work, having not exhausted your entitlement to statutory maternity leave, then your partner may be eligible to benefit from the Additional Paternity Leave Regulations 2010. The Regulations allow eligible fathers/partners of the child s mother, to take a minimum of 2 weeks and a maximum of 26 weeks leave, by the time the child reaches 12 months of age. The leave must be taken in one continuous block and the mother of the child must have returned to work. There are various eligibility criteria in order to meet the Additional Paternity Leave Regulations. If your partner is employed by the Kelda Group then please refer to The Paternity Leave Fact Pack on HR Online for more information. If your partner is employed by another organisation they will need to refer to their own organisation s Additional Paternity Leave Policy and requirements. If you decide to return to work early so that your partner can make use of the Additional Paternity Leave Regulations, where they are employed by a different organisation, you may be required to provide a written declaration confirming that you have returned to work. You may also be asked to provide their employer with a copy of the child s birth certificate and the name and address of your employer, the Kelda Group. Under the Regulations, the mother and the father/partner of the child s mother cannot take maternity leave and Additional Paternity leave at the same time. Your partner may be entitled to receive Additional Statutory Paternity Pay, provided you have: returned to work; stopped claiming any relevant pay, with at least two weeks of unexpired Statutory Maternity Pay period remaining. Additional Statutory Paternity Pay (paid at the same rate as Statutory Maternity Pay) is only payable during the period of your 39 week Maternity Allowance or Statutory Maternity Pay period. Do I need to tell my manager I m breast feeding? Yes, if you are breast feeding your manager will be required to undertake a risk assessment of your working environment. Do I have the right to return to the same job? If you take ordinary maternity (26 weeks leave) you are entitled to return to the same job in which you were employed before your maternity. If you take additional maternity leave (i.e. more than 26 weeks), you are entitled to return to the same job, unless this is not reasonably practical, in which case you would be offered a suitable alternative position, with no less favourable terms and conditions. What happens if I decide not to return to work after the 52 weeks maternity leave? If you decide that you do not want to return to work following your 52 weeks maternity leave, you should inform your manager in writing as soon as possible and give your contractual notice. During your maternity leave period 10
you will continue to be employed by the company and will be entitled to receive the benefits detailed in this policy, irrespective of whether you return to work at the end of the 52 weeks, with the exception that if you have received company maternity pay (CMP) you will be required to repay any enhancements in pay over and above statutory maternity pay (SMP). Can I request a change in my working arrangements? If you are thinking about changing your normal working patterns upon return from maternity leave, you have a statutory right to request flexible working. The statutory right is to request flexible working and therefore your application may not always be approved by your manager. Sometimes you may be able to work more flexibly but not necessarily in the pattern or number of hours which is your first choice. This will depend on how practical your request is to implement. However, the Kelda Group will always try to support requests for flexible working from individual s returning from maternity leave. There are many different forms of flexible working that cover the way your working hours could be organised during the day, week or year. Common kinds of flexible working include: part time hours, job share, term-time only. Parents are entitled to make a request for flexible working, if they:- have a child aged 16 or under, or a disabled child under 18; have worked continuously for 26 weeks for the Kelda Group; have not made another application to work flexibly during the last 12 months. To apply for flexible working you must put your request in writing, clearly setting out your proposal and explaining what effect it will have on the business. Following your written request your manager will arrange to meet with you to discuss through your aspirations. Where possible, your manager will endeavour to accommodate your aspirations, however, there may be circumstances where it is not possible. Alternatively, there may be occasions where you are able to work flexibly but the pattern you have requested may not be practical, so further discussion will be required to agree a new arrangement. If your manager approves your application, the change to your contractual terms will be permanent and you will not have the automatic right to revert back to your previous pattern of work. For more information on flexible working and the process please visit HR Online. Section 9: Unforeseen events If things do not go to plan what support is available and what will happen? In the unfortunate event that things do not go to plan with the birth your manager and HR will be available to guide you on what support is available. There is also support available from the Occupational Health Department Section 10: Childcare What is Childcare Saver? You can make savings on childcare costs by converting some of your salary to childcare vouchers. The Childcare Vouchers Direct scheme is provided by the business in partnership with Edenred to help parents and legal guardians save money on their childcare costs. The financial advantages for you are that neither income tax nor National Insurance are payable on a specified eligible amount that you spend on childcare in this way. For parents who joined the Childcare Voucher Scheme up to 5 th April 2011, the maximum statutory tax/ni free amount of salary that can be sacrificed to childcare vouchers is 243 per month. The legislation for Childcare Vouchers changed on 6 th April 2011 and this affected higher rate and additional rate tax payers who applied to join the scheme on or after 6 th April 2011. Higher rate tax payers who join the scheme on or after 6 th April 2011 are able to receive 28 per week ( 124 per month) in vouchers tax and NI exempt. Additional rate tax payers who join the scheme on or after 6 th April 2011 are able to receive 22 per week ( 97 per month) in vouchers tax and NI exempt. Basic rate taxpayers who join the scheme on or after 6 th April 2011 are still eligible to receive 55 per week ( 243 per month) in vouchers tax and NI exempt. 11
The purpose of the variable maximum amount of vouchers which are exempt from tax and NI is to standardise the income tax savings. Please see example shown below. Rate of Income tax Weekly tax exempt entitlement Weekly tax saving Basic Rate 20% 55 11 Higher Rate 40% 28 11 Additional Rate 50% 22 11 If you would like to see further details of the Childcare Vouchers Direct scheme, please log onto the Edenred website www.childcarevouchers.co.uk. You can also find more information under Your Benefits or on HR Online. Where can I get more information on childcare? You will find more information on childcare on the following websites:- Working Families www.workingfamilies.org.uk Childcare Link www.childcare.co.uk Am I entitled to any leave for childcare? There may be unforeseen circumstances when you may need unplanned or planned time off work due to childcare commitments. For more detailed information on Dependents and Parental leave please refer to HR Online. Section 11: Useful information and contacts What other benefits are available that may support me during my pregnancy and maternity leave? Favourites is an employee benefits package for colleagues in the Kelda Group. The scheme provides access to a range of products from retail vouchers to insurance schemes and savings on family days out and holidays. To see the full range of discounts and benefits please visit:- www.yorkshirewaterlifestyle.co.uk and enter keldagroup when prompted for a unique code / referral page. Useful Contacts Kelda Payroll 75 4992 or 01274 804992 Pensions Team 75 4133 or 01274 804133 Fleet 75 2254 or 01274 692254 Occupational Health 75 2742 or 01274 692742 HR General Enquiries 75 2554 or 01274 692554 Addresses Payroll: Kelda Payroll, Yorkshire Water Services, Western House, Western Way, Halifax Road, Bradford, BD6 2LZ Other useful website:- www.acas.org.uk provides comprehensive information on all employment matters and employee rights at work. 12