Childcare costs can be a huge drain on your finances, yet the little-known ‘Childcare Voucher' scheme can save you £100s on nursery fees or child minder costs every year.

How they work

Childcare costs allow you to pay for childcare from your pre-tax income. While this mightn't sound a big deal, the impact is huge. For every £1,000 a basic rate taxpayer earns, after tax and national insurance is deducted, you only actually receive a little under £700 in your pay packet.

But if you've kids by opting for childcare vouchers instead, the whole £1,000 pays for childcare so there's around a £300 gain per £1,000 of childcare.

We invited three volunteers into the studio to find out how much they and their families could save by taking out childcare vouchers. And the results were staggering. In total, the trio could save almost £3,000.

Where can they be used?

The vouchers cover childcare up to the age of fifteen, and are accepted by any nursery, playgroup, nanny, childminder or au pair that's registered and regulated by the Government department Ofsted.

Any parent, or those with parental responsibility for a child living with them, is eligible for the vouchers. Yet your employer must run a scheme. If not why not try and persuade them?

For full information read Martin’s detailed guide to Childcare Vouchers.