Benefits Of Nursery – Save Thousands With Workplace Scheme
For working parents there are obvious benefits to a nursery, providing quality, approved childcare that enables them to continue working and potentially advancing their careers.
However, there are also huge benefits to employers too and additional benefits available for any workplace that establishes a workplace nursery scheme.
In this page, we focus on the benefits of a workplace nursery scheme, these are advantages to employers and employees and benefits that can save workers many thousands of pounds, this even against other savings offered by schemes such as Childcare vouchers.
Benefits of Nursery – The Advantages Of A workplace Nursery Scheme
A workplace nursery scheme is, in essence, simply a link up between an employer and a quality local nursery. Employees at the business then have the opportunity to place their children in this nursery, with the payments made out of salary sacrifice.
For the parents, they get the same great nursery provision, only at reduced cost through tax savings – we give examples of the savings available lower down.
The nursery also benefits as it gets paid for all children placed via this scheme in one payment, removing the need to chase payments, it also helps ensure the nursery operates at a capacity level that is profitable.
What, though, of the employer? Beyond helping out their employees, how do they benefit?
The employer can gain financially too, offset savings potentially running to tens of thousands of pounds, but there are also benefits attained through helping working parents with their childcare arrangements.
Setting up a workplace nursery scheme, especially with Childcare Vouchers no longer available bar to those already on the scheme, both helps parents find a space at a good nursery, and also at a reduced cost.
This saving can make it possible for parents to work more hours should they so wish, recent research showing that many working parents would work more if only childcare costs were not so high.
The savings also helps bring childcare costs more into line with the rest of Europe – research having shown that the UK has among the highest childcare costs in the world.
Benefits of Nursery Scheme – Attract And Retain Staff
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.
Setting up a Workplace Nursery Scheme
On this site there is a wealth of information, please take the time to have a browse.
We offer a web-based employee benefits service that is easy to use and any queries are typically answered within the hour, meaning fast resolutions for busy workforces.
Each employer using the scheme has a named account manager on hand to ensure your scheme is the perfect fit for the needs of the company and its employees.
If you are an employer or an employee looking to find out more about workplace nursery schemes or would like to discuss setting one up, please contact us today on 0800 088 7315 to find out more.
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