There’s great news for parents worrying that they have missed out on the UK Childcare Vouchers Scheme. The scheme may be closed to new joiners post 4th October 2018, however there are more savings than ever for parents that are using the Workplace Nursery scheme. Any employer that wants to retain his valued staff who have gone off on maternity/paternity leave has the perfect opportunity to help them with their return to work decision?
Too many employees face the prospect of leaving their new baby with someone else all day whilst spending the bulk of their salary to cover childcare. New parents quickly find out that the cost of a baby nursery place in the UK is anything from £1,000 up to around £1,850 a month for a great nursery close to where they live. Not only are they faced with the emotional trauma of leaving their child but they now have the issue of spending a huge proportion of their monthly income on nursery fees.
By offering employees the workplace nursery benefit, companies can ease the pain significantly. Based on fees of £1,500 a month, a parent paying higher rate tax will save £6,202 a year.
The workplace nursery benefit makes the world of difference to employees with small children by allowing them to choose the right childcare without breaking the bank. Better still it can be offered with no cost to the company and in most cases actually offering a saving to the company in employers National Insurance.
It’s a simple but highly effective solution to the big problem of keeping key staff once they have children.
This benefit increases the take home pay of employees at a time when they are facing a lot of new expenditure, baby equipment, larger home, childcare costs and loss of income due to maternity/paternity leave. Remember, it doesn’t cost the business a single penny. It’s a true Win – Win benefit for any forward thinking employer who values their staff.
Think of the Workplace Nursery Scheme as a “need to have” benefit – not just a nice to have benefit.