A workplace nursery scheme also helps both attract the best employees and then retain them. For any new starter who either has children or plans to in future, this is a benefit that is the equivalent of many thousands of pounds per year in extra pay.
As for those already employed, if they are receiving superb nursery provision through work, this at a reduced rate, it is less likely they will move on, when to do so causes disruption and might be finically costly.
It is also worth noting that parents will also be benefitting from having a say in how extra funds are spent at the nursery. The offset payments made by the employer can be used to help enhance the nursery, the way the funds are spent in part decided by the parents. This means that parents could decide that a new outdoor play area is important, or extra learning resources, or maybe new interactive equipment.
Key, though, to all of this is the level of saving available.
With childcare costs often well in excess of £1,500 per month, many thousands can be saved.
Use our calculators to find out how much any employee or business would save
For a parent who is a basic rate tax payer with nursery costs of £1,000 per month, the savings would come to almost £3,000 per year. If this parent were a higher rate tax payer, the savings would increase to more than £4,250.
When nursery fees are higher, as they are in many cities, a basic rate tax payer would save £4,414 per annum against £1,500 monthly fees, a higher rate tax payer would save £6,412 and an additional rate payer would save £7,411.
And, any parent with two children in nursery and paying £2,400 per month would save £10,259 per annum if they are a higher rate tax payer!
As a business, there are savings too.
A business with 10 employees and average nursery fees of £1,250 per month would save close to £11,000 per annum.
A company with 200 parents at average nursery costs of £1,500 per month would save more than £300,000 per year.