AN East Lancashire nursery is taking on the giants of the childcare industry in a bid to safeguard its long-term future.

Care 4 Kids is an 85-place nursery which was opened in 2001. But now its owners have branched out as a provider of childcare vouchers - a government scheme to help working parents afford care.

Childcare vouchers can be given by firms to employees to help them with childcare costs - money is taken out of their wages but is not taxed.

The vouchers can be handed to childcare providers, such as nursery schools.

But Care 4 Kids estimates that almost 80% of parents that stand to benefit are still unaware the scheme even exists.

The firm, of Agnes Street, Bank Top, Blackburn, is thought to be the only childcare company providing vouchers in Lancashire, and one of just a handful in the country.

It will act as a third party between the government, which controls the scheme, and companies across the country, to administer the vouchers.

And the firm is hoping to become a big player in the voucher market by operating differently, and approaching parents and child care centres about the scheme rather than companies, which are often too busy to respond.

Mark Newton, national co-ordinator and marketing executive for the Care 4 Kids voucher scheme, which is run by just a handful of staff at the nursey, said: "We started it from grass roots, from nothing and it's a proper business now. A lot of the other companies have a lot of money to throw at it.

"The attitude of many parents and firms is that it's going to be like starting a company pension scheme with lots of red tape, but it's not.

" It's so simple. It doesn't take months of legislation, check-ups and legal issues."

Gordon Brown announced in 2005 that the government would help working parents afford childcare costs.

A number of national companies in England such as Busy Bees operate voucher schemes.

The cash used to pay for the vouchers comes out of a staff member's wages, but is not taxed like their regular income. Businesses don't help pay for the vouchers but are exempt from national insurance payments on the money used for vouchers, encouraging them to promote the scheme.

The voucher providers take a percentage to pay for their costs.