A leading childcare voucher provider is advising parents on the best way to make their money go further in light of a recent survey conducted by the Daycare Trust showing the rising cost of childcare.

Co-operative Employee Benefits, which offers a range of solutions to help families save money, is recommending parents use childcare vouchers, available through employer schemes, to help pay for childcare.

Tracy Wilson, Group Operations Manager for Co-operative Employee Benefits said: "With the cost of childcare rapidly increasing and salaries not growing to match this increase, families should seriously consider using childcare vouchers, which are an alternative way to pay for childcare.

"They are a great way for families to get the most out of their wages as the vouchers allow tax-payers to pay for childcare from their pre-tax and national insurance income. This means that working parents get more for their money than they would if they paid cash.

"But higher rate tax-payers need to be aware that they could miss out on over £500 a year if they sign up for childcare vouchers after 5th April when changes in tax rules are enforced.

"If they sign up in April some families could be entitled to much less, it really is important they join the scheme sooner rather than later if they are to get the most out of their money."

Figures released by the tenth annual Daycare Trust survey show the cost of a nursery place for a child aged two, has risen by 4.8 per cent but the average wage has only increased by 2.1 per cent, causing parents to feel a serious financial strain.

Tracy added: "What many parents don't know is that they may both be entitled to childcare vouchers. They can make huge savings if they both sign up to them and with the rise in VAT and rising cost of other household goods, it's a savvy way to save money."

The Co-operative Employee Benefits, which is part of The Midcounties Co-operative, is a leading ethical business which re-invest profits into local projects and charities.