Workplace Nursery Scheme Moves Centre Stage After Childcare Voucher Closure 

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Workplace Nursery Scheme Moves Centre Stage After Childcare Voucher Closure 

children in a nursery

The Childcare Voucher scheme might now have closed to new applicants, but this should not be to the detriment of working parents or their employers.

Focus should now switch back to the Workplace Nursery Scheme, a scheme that can be of far more value to anyone with a child aged five or under, and a scheme with huge benefits to employers too.

In this post, we look at the great benefits of running a Workplace Nursery Scheme and give details of the potential savings.

The scheme, as the name implies, exists to help any parents who require a nursery to look after their child or children while they are working.

It has actually been in existence for far longer than Childcare Vouchers, starting in 1988. 

While it does not have the same broad age range benefits of the vouchers – it is only of value to a parent while their child is of nursery age, whereas the vouchers can be used until the child is 12 (or 16 if they have additional needs) – it is far more beneficial during a child’s early years.

Workplace Nursery Scheme = Huge Potential Savings

With Childcare Vouchers, a parent could put up to £243 per month from their salary into this benefit, this leading to a combined tax and NI saving of up to £933 per annum (potentially £1,866 per household).

The Workplace Nursery Scheme does not have this same restriction and so any parent can enjoy far greater tax and NI reductions.

As an example, a parent paying the UK average nursery fee of £850 per month would be able to save £2,570 using a workplace nursery scheme, so more than £1,500 more than they would save using Childcare Vouchers.

A parent with two children in nursery in London where fees are typically far higher might save a figure closer to £5,000 per annum.

To find out more, have a look at our dedicated Workplace Nursery Scheme site and give us a call with any questions on 0800 088 7315.

The financial benefits of those scheme have clear benefits to employees.

The savings make it easier to return to work, they could be the difference between whether it seems financially viable or worthwhile to return to work.

The scheme also helps any employer attract high-calibre new recruits as being able to point out to any parent that they will be able to save thousands of pounds from their tax and NI bills helps your company stand out against others.

Any employee can easily work out how much they would save by using our calculator. A calculator for employers is available too – at worst, this is a benefit that is cost neutral for the employer.

Aside from the financial benefits, employees value the scheme because it gives them more involvement in their child’s nursery provision, that is because of the way in which the partnership works.

The company the employees are working for creates a direct link with the nursery and makes contributions towards the running and upkeep of the nursery, these payments coming from National Insurance savings.

A meeting would take place between the company, the nursery and Enjoy Benefits as the facilitator to discuss how this contribution should be used – as an example it might be on learning material, or outdoor play equipment. 

Importantly, employees of your company act as company representatives at this and subsequent meetings meaning that parents are getting a direct input into how their child’s nursery is run and what these additional funds are spent on.

Benefits For The Employee, Employer And Nursery

Employees are making savings, they are getting a say in the running of their child’s nursery and they are also sending their child to a nursery that is getting extra funding for learning and play equipment.

What, though, of your company, the employer?

For you there is the benefit of having a great staff recruitment tool and one that also leads to loyalty – the fact a member of staff’s child is receiving superb nursery provision thanks in part to your company is another reason to remain loyal.

There can also be overall savings for the company, while at worst it is cost neutral.

This is also a scheme with only light touch administration, it is a scheme that Enjoy Benefits can put into place for you.

Additionally, the nursery you partner with benefits too.

They receive extra funds in the form of your additional contributions. 

They also get paid promptly, at the start of each month they receive one payment from your company that covers all employees’ payments and so chasing payment and money coming through in dribs and drabs is now a greatly reduced problem.

The savings made by employees can also lead to them booking extra days in nursery as it might now be possible for them to afford extra childcare cover.

A final benefit to the nursery is that being part of a Workplace Nursery Scheme can also help attract new parents and their children.

To find out more, have a look at our dedicated Workplace Nursery Scheme site and give us a call with any questions on 0800 088 7315.

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