£20k saving in childcare - did I get this right?!!

The price my husband and I pay for the opportunity to pursue ambitious full-time careers is 2x£2,500=£5,000 per month in nursery fees for our 2 children under 5 years old. Our nursery sent a letter titled ‘Help with childcare costs’ where they say they don’t participate in the 15/30h free childcare government scheme, but that they do work with ‘Enjoy Benefits’ and ‘Workplace Nursery’ which, if my employer signs up to, would mean we can save income tax and national insurance. According to the savings calculator on their website, we’d be saving £20k per year!!! Did I get this right? If yes, why isn’t everyone shouting from the top of their lungs about this benefit?? Does anyone have experience with these?

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I think its because its something your employer has to sign up to. I dont know the technicalities behind it from an employer's point of view but essentially for the employee you would be paying for childcare from your net income (before tax and ni deduction) so you save the tax and ni bit of your childcare cost. If its not a scheme that your employer is providing then you cant benefit from it, and do you have bargaining power to be able to get your employer to sign up for it 🤔

If the saving is indeed £20k I am more than happy to lobby as much as needed to make them sign up for it! I’ll do the paperwork myself if need be 💸💸💸

You said you spend 5k per month, so that is 60k per year. So your saving would be the tax and ni that you would have paid off that 60k.

You pay £2500 per child in nursery fees a month?

Following as I’m about to start a petition at work if this is true 😂

‘Enjoy benefits’ is not free. Your employer has to pay to partner with them and some employers choose to pass on some of that cost to the employee (but it should still work out cheaper!) At my place of work, you also get locked into a 12 month contract where you might be liable for some costs, if you end up leaving early. Also, some nursery chains can’t be used (Bright Horizons and BusyBees). I think there might be some more small font stuff but those are some of the considerations :)

@Abi yes… £2,437 per child right now, going up to £2,574 from September. It’s shocking 😭

@Natalia thanks so much for the considerations, this is exactly what I was looking to understand 🙏

@Cath I’ll join!!!

Wow! I didn't think they could cost anymore! Mine is £1500 for full time 8-5 5 days a week! Where is your nursery? London?

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