A service voucher is a financial instrument which allows a public authority to target social services at those it deems in need, and at the same time to promote employment and labour market integration. It effectively boosts demand for certain services which meet social policy objectives.
A voucher scheme will typically start by defining services which are needed in society, but which are being supplied neither by the market nor by the public sector. These might include for example home care, household repairs, ironing, or bicycle hire and repair. The activities within the scheme will typically be agreed with trade unions and employers' organisations, to avoid concern about the disturbance of unfair competition.
Potential providers of these services are identified, often from among the long-term unemployed.