Workplace Nursery Scheme – What is it?
The Workplace Nursery Scheme is designed to support families with their childcare costs. The scheme allows employers to provide tax-free childcare for their employees’ children by partnering with a nursery provider. The nursery receives £100 each month for a child on the scheme, and the parent can have a say in how the nursery spends this money – on additional resources for the garden, more books or trips out.
What are the key features?
Both the employer and the parent will make tax savings. This is because contributions made by an employer towards the workplace nursery scheme are exempt from employer National Insurance Contributions. The costs incurred by the employer to set up and maintain the workplace nursery are tax deductible expenses, thus lowering the taxable profits of the company.
How does it work?
- The employer sets up a partnership with a registered nursery provider – in this case, N Family Club.
- The Employee can then use the nursery services as a non-taxable benefit.
Tax advantages
Any contributions to nursery costs are exempt from National Insurance contributions.
Improved employee retention
By supporting parents with the costs of childcare, employers have seen increased loyalty and a reduction in team turnover rates. An employee is more likely to stay within their role if they are happy!
Enhanced productivity
Juggling childcare and work can be stressful! That is why the Workplace Nursery Scheme has been designed to lessen the financial burden on working parents, and offer them more affordable childcare options to drive workplace productivity.
Competitive edge
Having the Workplace Nursery Scheme is an attractive incentive for prospective employees. It demonstrates a commitment to employee wellbeing and family support.
What to do next?
If you are interested in learning more about this scheme, you can email teegan.traub@nfamilyclub.com. You can also download and explore our workplace nursery scheme brochure and share it with your employer.