The Top 3 Workplace Nursery Employee Benefits

Employers can help working parents overcome work-life balance challenges by offering a workplace nursery scheme as part of their benefits package. Read on to learn more about how workplace nursery schemes work and Ben's top picks, so you can take the guesswork out of finding the perfect provider for your team.

Benefits 101

Feb 23, 2024 ⋅ 4 min read

Finding childcare can make it difficult for your employees, especially parents, to manage their work-life balance.

Employers can help working parents overcome these challenges by offering a workplace nursery scheme as part of their benefits package. Read on to learn more about how workplace nursery schemes work and Ben's top picks, so you can take the guesswork out of finding the perfect provider for your team.

What are workplace nursery benefits and how do they work?

Workplace nursery benefits generally refer to programs or services that support employees with young children by providing access to childcare solutions. 

This benefit was introduced in 1990 as a way to encourage employers to provide nursery places for employees, either by providing an on-site nursery or off-site, by partnering with childcare providers.

Employees can choose from a network of approved providers (depending on location, style and cost) and receive financial assistance from their employer.

It operates on a salary sacrifice scheme, in which employees are able to pay for their childcare from their gross salary before tax and National Insurance (NI) are deducted. This can save employees a significant amount of money on their childcare costs.

The payment is made when a portion of their gross salary is deducted. 

Here's a breakdown of how it works:

  • The employer signs up with a workplace nursery scheme provider.
  • The employee chooses a registered childcare provider that is part of the scheme.
  • The employee agrees to have a portion of their salary deducted each month to pay for their childcare fees.
  • The employer pays the childcare provider directly from the employee's salary.
  • The employee saves money on tax and NI because the childcare fees are paid from their gross salary.

Why choose a workplace nursery benefit for your team’s benefits package

More and more employers are providing on-site childcare as a means to attract and retain talent — and for good reason. 

Companies who offer nursery schemes as part of their benefits, help to lower the costs of childcare for their working parents.

In a survey by McKinsey, working parents with children aged five and under, stated affordability and quality as the top challenges they faced with childcare. 

The same study revealed that 45% of these mothers who left the workforce during the COVID-19 pandemic cited childcare as a major reason for their departure. Only 14% of fathers stated the same reason. Good employees leave because they can't afford childcare. 

Investing in parent employees shows that the company values and recognises their unique needs and is committed to supporting them. This fosters loyalty and engagement, which leads to lower turnover rates. 

With reliable childcare, parents are less likely to miss work due to childcare issues, leading to better attendance and productivity. 

Flexible working arrangements remain the major reason why employees choose to stay with companies. For employees on parental leave, a scheme like this in the workplace will make it easier for them to return to the office. Employees who feel support from their managers and employers, remain productive at work, leading to improved customer service and revenue. 

The top 3 workplace nursery benefit providers 

Enjoy Benefits

For employers who would like to operate on a salary sacrifice, Enjoy Benefits would be a great option. They offer a workplace nursery as part of their benefits for companies, parents in your teams can use the workplace nursery scheme at any nursery of their choice. 

All that is required is a contracted partnership between the employer and a nursery. 

Children under the age of 5 are eligible for the scheme, and your nursery fees must be £650 per month in order to use the benefit. 

Organizations who choose not to go for the salary sacrifice option, can decide between tax-free childcare and vouchers. (Although in the UK, as of 2018, vouchers have been replaced by workplace nursery schemes)

Busy Bees

Busy Bees serves as the UK’s largest childcare and nursery provider. They currently oversee 390 nurseries right across the UK, Ireland and overseas. At Busy Bees, working parents can find a supportive environment where their kids can thrive, regardless of individual needs, learning styles, or backgrounds. 

For busy parents who would like to be part of their kids' learning activities, They provide a digital app — Unleashing Potential (UP), which is a learning platform where parents can get essential guidance, information, skills and training needed to support each child’s development activities. 

However, they do not operate on a salary sacrifice scheme. The funding options available are: tax-free childcare and childcare vouchers. 


The costs of childcare in the UK is becoming increasingly expensive, gogeta remains the flexible and affordable option for nursery fees payments. 

Parents can pay their nursery fees through a salary sacrifice, saving them thousands of pounds every year.  

For employers, the gogeta admin provides a fully automated service for invoice payment, and the portal lets your employees monitor the status of payments, giving them peace of mind. 

Ready to explore your options?

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