Workplace Nursery
The Department for Children, Schools and Families, has designated Flying Start Day Nursery a ‘Workplace Nursery’. This is something quite new and means that parents who are employed locally can benefit significantly from their childcare costs.
The costs of fees at a Workplace Nursery can be deducted from parents’ wages or salaries by their employer before Tax and National Insurance deductions and paid direct to the nursery. This means that parents who are employed will be exempt from paying Tax and National Insurance on the amount of nursery fees deducted from their wage or salary. A significant cost saving.
For an employer to be able to offer their staff a Workplace Nursery deduction they will need to meet criteria set by HM Revenue and Customs. If you wish to take advantage from this scheme please ask your employer if they meet the criteria and are happy to participate in the Workplace Nursery scheme.
How does a Workplace Nursery Save Money?
In the same way that Childcare Vouchers are, Workplace Nursery
places are offered on a ‘salary sacrifice’ basis. This means
that you sacrifice a specific amount of your salary and instead
receive that value of childcare at the designated Workplace
Nursery. Workplace Nursery places are exempt from employee
Tax and National Insurance Contributions (NIC), so you only
pay Tax and NI on the reduced level of your salary.
Estimated savings on a Workplace Nursery (WPN) place. Based
on fees of £640 per month (example calculated using Tax at
22% and NIC at 11%).
| Salary (no WPN) | Salary (with WPN) | |
| Monthly Salary | £1500 | £1500 |
| Loss Cost of WPN fees | £0 | £640 |
| Amount used to calculate Tax and NIC | £1500 | £860 |
| Employee Tax | £209 | £81 |
| Employee NIC | £115 | £45 |
| Saving (per month) | £0 | £198 |
| Actual cost of childcare place | £640 | £442 |
Savings on this example may increase to £262 per month for higher rate Tax payers (Figures shown are approximate and exact savings depend on personal circumstances).
| For more information contact: | |
| Write to: |
Linda Randle-Bissell, Employer Engagement Officer (CMB) Early Years and Childcare Service Richmond Hill Melton Road Sprotbrough Doncaster DN5 7SB |
| Telephone: | 01302 862141 |
| Email: | linda.randle-bissell @ doncaster.gov.uk |
You and your child or children are most welcome at Flying Start Day Nursery whether you wish to participate in the workplace nursery scheme or not.
Flying Start was funded by DCSF through Doncaster Council.
