Workplace Nursery Partnership – How It Works
These partnerships are essentially just a link-up between an employer and a high-quality local nursery.
If, for instance, an employer has 10 employees who use the scheme then their nursery fees are paid through salary sacrifice directly to the nursery, this saving each employee many thousands of pounds as the payment comes out pre tax.
The link, however, is not burdensome to maintain, when operated through a provider it becomes simply a couple of meetings per year after the initial set-up. The link has to be in more than in just name only to satisfy HMRC, but workplace benefits providers such as Enjoy Benefits are able to ensure that the partnership meets all requirements while not being time consuming to maintain.
To aid in the ongoing management of the partnership, an online portal is available, this enabling each individual employee to manage their childcare bookings and also for the employer to see the overall status of the use of the scheme.
The partnerships are not new, however they are increasingly common following the mothballing of the Childcare Voucher scheme. In truth, for those with children of nursery age, the workplace nursery partnership was almost always the better option, with far greater savings available rather than the cap on Childcare Vouchers.
However, the fact that there was some admin involved, however slight, put many employers off.