COUNCIL workers with young families are being offered the chance to receive vouchers to pay for childcare.

Derwentside District Council has agreed to introduce the new salary sacrifice scheme for employees with children.

People who sign up will pay £217 a month out of their wages and receive redeemable vouchers for the same amount from April 6.

The employee and the council will then receive reductions in tax and National Insurance contributions.

A person earning the average council salary of £18,000 a year can expect to save £858 a year.

Council leader Councillor Alex Watson said: "It is an innovative approach and about identifying the huge financial burden that couples and especially lone parents have and the problems in getting back to work.

"We want to make the labour market as flexible as possible so people are not restricted about going back to work.

"Some people rely on grandparents for looking after their children, but it is not always suitable and this will mean professional childcare is affordable."

Coun Watson said some people pay between £60 and £125 a week for childcare.

He hopes it will make life easier for workers and reduce absenteeism. Employees can only use vouchers to pay for childcare that has been registered and approved.

The need for more child care has become increasingly important as a growing number of mothers are returning to paid employment rather than taking full-time care of their children.

The vouchers allow parents the freedom to meet care needs for babies and toddlers as well as children up to the age of 16.

Durham County Council introduced a scheme that involved savings in National Insurance in January last year but from this financial year it will include saving in income tax.

A spokesman said: "Under our present scheme our take- up has been satisfactory. We think it will increase after April 1 because of the tax savings. We are already seeing an increase in demand for information about the scheme.