The employer's guide to the workplace nursery scheme.
How it works, what it costs, and how to set it up · 10 min read
The workplace nursery scheme is one of the most valuable things you can offer working parents, and it's simpler to run than most HR teams expect. Here's the complete picture of the scheme.
What it is
It's an employer-provided scheme that lets your people pay for a registered nursery place through salary sacrifice. You provide a contribution towards nursery costs, and the scheme is a workplace nursery place you provide, not a new cost line on the business.
What it costs
Your contribution towards nursery costs is split so most of it reaches the nursery: 58% goes to the nursery, and 42% is Kinsail's management fee for running the scheme. There's a one-off onboarding fee to get set up, then a standard salary sacrifice change to payroll. See the full breakdown on the employer page.
Is it compliant?
Yes. The scheme is provided under Section 318 of the Income Tax (Earnings and Pensions) Act 2003. Kinsail structures each arrangement around HMRC's published guidance and maintains all documentation, receipts and audit trails.
How much admin is involved?
Very little. You sign a short operator agreement, make one standard payroll change, and Kinsail handles contracts, nursery onboarding, compliance meetings and reporting. Most employers are live within a few weeks.
One standard payroll change at the start. There's nothing for your team to chase.
Why offer it?
It's a genuine, high-value scheme that helps working parents stay and helps you attract them, with no minimum headcount. Model the impact with the calculator, compare it to other schemes in our comparison, or book a demo.
Give your people a scheme that matters.
Book a 30-minute demo tailored to your organisation.