The idea of a nursery at work is an increasingly popular option as parent struggle with the high cost of childcare in the UK.

The UK, as we have written about previously, has some of the highest childcare costs in the world – as a percentage of average income, the costs are many times higher than in other major European economies.

For parents, the cost means that they are often unable to return to work post childbirth, or can only do so on reduced hours. Studies have shown that a large percentage of working mothers would do more hours if only childcare costs were more reasonable.

For employers too, the benefits of a nursery at work are clear as it allows employees to commit to working more regularly, the nursery is also a sign that an employer cares for its employees, offering them a benefit of true value.

However, for most businesses a nursery at work simply isn’t possible or practical. We would also argue that it is rarely the best option.

Workplace Nursery Scheme – Delivering The Benefits of a Nursery at Work

There is a middle ground, an option that has the same benefits, but without the requirement to have a nursery at work.

A workplace nursery scheme partners an employer with a local, high quality nursery. Employees can then sign up to the scheme, receiving nursery provision via salary sacrifice and so saving many thousands of pounds per year – we will run through some examples lower down this page.

Employers benefit from having greater staff availability as the barrier to work for employees is reduced; it is also a benefit that encourages staff retention and also encourages quality newcomers.

For the employer, it is either cost neutral or leads to some savings and the administrative burden is limited to a handful of short meetings and catch up phone calls per year. The administration and paperwork can be handled by a workplace benefit expert – at Enjoy Benefits we are UK leaders in this field, working with businesses of all sizes.

The nursery also benefits – they have the certainty of spaces being filled and they receive regular payment in one go from the employer, rather than having to chase parents individually.

Workplace nursery schemes are, for most businesses and employees, a far better option than a nursery at work – the quality of the nursery is assured as it is an established provider with a history of Ofsted reports.

For those with children of nursery age, the savings are also far in excess of the old Childcare Voucher Scheme, an option that in any case is only now open to those already receiving the vouchers.

For parents with two children in nursery, the savings available by using a workplace nursery scheme can be beyond £10,000 – and this is with no drop in quality of provision, it will be a high-class, local nursery.

On site, we have a savings calculator so you can work out how the scheme would work out given your specific details.

Use our workplace nursery savings calculator

For a parent who is a basic rate tax payer with nursery costs of £1,000 per month, the savings would come to £2,942 per year. If this parent were a higher rate tax payer, the savings would increase to £4,274.

Nursery At Work – Huge Savings

However, in some cities it is rare to find nursery provision for £1,000 per month, in London £1,500 is more common.workplace nursery

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, for instance, £2,400 per month would save £10,259 per annum if they are a higher rate tax payer!

An employer could instead look to set up a nursery at work, but the set up fees would be great, the quality of provision potentially lower than at an established provider and the savings available to employees no higher. There is no compelling reason to set up a nursery at work when partnering with a nursery via the workplace nursery scheme delivers the exact same benefits with none of the burden.

On this site, we have a wealth of information about Workplace Nursery Schemes, including how they work and testimonials from those who have benefitted.

We would also be happy to answer any queries you may have – we have live chat available (during work hours) and can also be contacted on 0800 088 7315 or via our contact form

need help? get in touch

Queries are dealt with within 1 working day.

Contact Form

talk to our team

0800 088 7315

need help?
get in touch

Queries are dealt with within 1 working day.

Contact Form

talk to our team

0800 088 7315