The parent’s guide to saving on nursery fees.
Everything you need to know · 9 min read
If nursery fees feel like a second rent, you're not imagining it. The workplace nursery scheme is a legitimate way to bring that cost down, often by a lot. This guide explains how the scheme works and how to start.
What is the workplace nursery scheme?
It's a scheme your employer provides that lets you pay for a registered nursery place through salary sacrifice. Because the cost comes out of your salary before tax and National Insurance, the same place costs you less each month. Your employer also provides a contribution towards nursery costs on top.
How much can you save?
Most parents save between 25% and 47% of their fees, depending on salary and how much they pay. On fees of £1,200 a month, that's often around £4,608 a year. The quickest way to see your number is the savings calculator.
The more you pay in nursery fees, the more you tend to save each month.
Who is eligible?
You'll usually qualify if your child attends an Ofsted-registered nursery, you're employed through PAYE, and your pay stays above the National Minimum Wage after sacrifice. Not sure? The eligibility checker takes under a minute.
How it compares to other schemes
Unlike Tax-Free Childcare, there's no £2,000 cap, and unlike childcare vouchers it's open to new joiners. See the full comparison of childcare schemes.
Getting started
Use the calculator, then if your employer isn't signed up we can introduce the scheme to them for you. You keep the nursery you already use. Browse settings in the nursery marketplace, and see more in our FAQs.