How Workplace Nursery Benefit can help nursery providers

The Workplace Nursery benefit allows your nursery parents’ employers to work in partnership with a chosen nursery like yours. This then enables the parents to save Tax and NI on ALL of their nursery fees from birth up to the age of 5. Enjoy Benefits have been offering the workplace nursery benefit since 2002.

How will offering the Workplace Nursery benefit to your nursery clientele help your business?

  1. Parents using your nursery will save significant sums off the cost of their monthly nursery fees. This may then allow them to book in extra days of childcare with you.
  2. You receive one payment at the start of each month, for the full months nursery fees
  3. You receive additional financial support for your nursery from the companies that you partner with. This is up to £1200 per family per year that you receive, over and above the monthly nursery fees. You can spend this on the running and upkeep of your nursery
  4. This benefit makes a huge difference to the finances of the parents using your nursery and will attract new parents to your nursery

Annual Benefit

1 Child£1,200.00
2 Children£2,400.00
3 Children£3,600.00
4 Children£4,800.00
20 Children£24,000.00

Workplace Nursery Schemes – More background for Nursery Providers

  • The benefit has been around since 1988 and was widely used before childcare vouchers came into play in 2005.
  • Parents save more than they ever could with childcare vouchers because they can have the full cost of their nursery fees deducted from their gross salary. This gives them a huge saving in tax and NI payments.
  • Tax free childcare launched by the government this year – 2018 – isn’t to be confused with either the childcare voucher scheme or workplace nursery scheme as all three benefits are completely separate. The workplace nursery scheme will not be altered this year by the Government and is available straight away.

Key details in creating a Workplace Nursery

For HMRC to be happy that the benefit is compliant, and tax and NI savings can be made, there are a few points that need to be adhered to:

  • The benefit must run over a set period (Enjoy Benefits run contracts for 12 months) and there must be a partnership between the nursery and the parents employer. This partnership is facilitated by Enjoy Benefits who organise the contract paperwork, confirm fees payable to the nursery and the amount of additional funding.
  • The employer must ‘partially or fully fund’ the chosen nurseries during the contract. Based on a parent with fees of £850 per month, your nursery will receive £1200 over 12 months (this will be sent to you as a payment of £100 per month as well as the nursery fees). EB will invoice the employer for the fees and then transfer the money into the nursery account at the beginning of every month. We deal with all the admin and we ensure you receive one payment for fees at the start of the month which cuts down on payments you have to reconcile for each child you take care of.
  • There are meetings which must be held at the nursery between EB, the nursery and the parent. Face to face meetings will be once a year at the beginning of the contract and one more telephone call will be made between EB and the nursery half way through. The face to face meeting will last up to one hour and this is to discuss and agree on how you would like to spend the additional funding within the setting. EB will arrange and attend all the meetings and note down/send all the minutes to each party afterwards.

As long as these ‘key pegs’ are in the ground then the benefit is reflecting the requirements of Section 318 of the Income Tax (Earnings and Pensions) Act 2003.

Watch our Workplace nursery benefit video for more detail on running this benefit.

Click here to enquire or call us on 0800 088 7315. We will send you an information pack in PDF format. This contains concise information on the Workplace Nursery Provision and how it could benefit your nursery.


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The Scheme works by an employer contracting with a Workplace Nursery for places for their employee’s children…

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Workplace Nursery Provision works by an employer contracting with a nursery such as yours for places for their employee’s children…

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