Childcare – definitions – On-site nurseries

On-site workplace nursery schemes are supplied by employers to offer working parents another affordable childcare option. Child care vouchers may be used to pay for this facility.

Because of the capital expenditure involved in providing onsite child care nurseries, it is an option that tends to be more suitable for larger organisations.

On-site nursery and childcare facilities do away with need for parents to undertake a separate nursery run. Parents are also nearby if any child care problem crops up.

The workplace nursery option also has tax benefits. Both employers and employees are exempt from tax and national insurance contributions on the cost of the childcare, as long as the nursery is open to all staff. Full details of the tax exemption are available at

Unsurprisingly, running an on-site service involves adhering to many rules and regulations, governing everything from referencing staff to making sure Ofsted health and safety standards are met.

Many employers choose to work with existing nursery organisations by inviting them to tender to provide a nursery onsite.

However, there is an alternative in the form of a workplace nursery partnership. Many providers believe that this type of scheme can offer more choice and flexibility than on-site nurseries.

Workplace nursery partnership schemes allow employers to select and register with government-approved nurseries across the country and, provided the company supports the nursery with finance or partly manages it, employees can receive tax relief on the cost of using the facility. Through a workplace nursery partnership scheme, employees are able to take their children to a childcare facility near their home then commute to work, providing them with more choice over their child care provision.

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