Compare childcare schemes
Which childcare scheme saves you the most?
The workplace nursery scheme, Tax-Free Childcare and childcare vouchers all help with the cost of childcare, but they work very differently. Here's how they compare.
| Workplace nursery scheme | Tax-Free Childcare | Childcare vouchers | |
|---|---|---|---|
| Typical saving | Up to 47% of fees | 20% (up to £2,000/child a year) | Around 20% to 32% |
| Cap on savings | No fixed cap; scales with your fees | Capped at £2,000 per child a year | Capped by monthly voucher limit |
| How you pay | Salary sacrifice, before tax & NI | Top-up account (government adds 20%) | Salary sacrifice, before tax & NI |
| Open to new joiners? | Yes | Yes | Closed to new entrants (2018) |
| Employer contributes | Yes, towards nursery costs | No | No |
| Supports the nursery too | Yes | No | No |
| Admin for parents | Minimal; managed by Kinsail | You manage the account and reconfirm quarterly | Minimal |
Figures are indicative and depend on your salary, tax band and fees. This is general information, not tax advice.
In short
Why the workplace nursery scheme often wins.
No savings cap.
Unlike Tax-Free Childcare's £2,000 limit, savings scale with your actual fees.
Your employer chips in.
A contribution towards nursery costs on top of your own saving.
Your nursery benefits.
A share goes to the nursery for real improvements.
Barely any admin.
Kinsail runs it end to end, so there's nothing to reconfirm each quarter.
See your saving in about a minute.
Compare the numbers for your own situation with the savings calculator.