Childcare voucher providers have won a two-year stay of execution with schemes remaining open following a delay to the government's tax-free childcare programme.
This means employers will still be able to open new voucher schemes and employees will be able to join them until the project is launched in 2017.
However the government has hit out at the providers for taking "costly and wasteful" legal action and extending it unnecessarily.
Employer-offered vouchers were originally planned to be closed to new entrants this autumn when tax-free childcare (TFC) came into operation.
But the government was forced to delay the introduction of TFC until "early 2017" as a result of legal action taken by childcare voucher providers.
The action was ultimately unsuccessful with the Supreme Court unanimously dismissing the Childcare Voucher Providers Association (CVPA) and Edenred case.
A statement from HM Treasury confirmed the delay was the result of a court order.
"As a result of the legal action, the court placed a suspension on the development of the scheme which prevented key delivery steps from taking place. This legal action was brought by a small group of childcare voucher providers involved in the delivery of the scheme that Tax-Free Childcare will eventually replace," it said.
Exchequer secretary to the treasury Damian Hinds said: "We are pleased that the government's proposals for delivering tax-free childcare have been found to be clearly lawful. This government is absolutely clear on the importance of supporting families with their childcare costs.
"It is disappointing that some organisations involved in the existing scheme felt the need to take and persist in this costly and wasteful course of action, which has led to a delay in the launch of tax-free childcare.
"We are now pressing ahead with the scheme as part of our ongoing commitment to support working families," he added.
Tax-free childcare has been heavily criticised for excluding single working parent families and estimates suggest that as many as 80% of families could be better off under the existing scheme.
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