We are a small company running private nurseries business providing childcare. Many of our customers pay with childcare vouchers. Childcare voucher providers are notoriously bad at reacting to parents requests to stop voucher payments. As result we have overpayments with few customers whose children leave for school and do not need our services any more. Shell we refund straight to parents or to Voucher providers?
This is a tricky area. Although it is technically the parent's money Childcare Vouchers are precisely for that reason - to pay for childcare. As helpful as you seem to be unfortunately there could be legal implications re. refunding directly to parents due to the tax benefits of this scheme.
To relinquish yourself of any liability you would be advised to direct parents to deal with the voucher providers for a refund as it is the providers mistake and not yours!!