Attracting and retaining skilled talent has become one of the biggest priorities for modern employers—especially in fast-moving sectors such as logistics, wholesale distribution, and import/export. As companies compete for experienced staff, one employee benefit is becoming increasingly valuable: the workplace nursery scheme.

This scheme allows employers to support working parents by providing full, tax-efficient childcare solutions. For businesses with demanding schedules and large teams—such as those operating in FMCG, manufacturing, supply chain, and warehouse environments—the workplace nursery scheme can significantly improve productivity, reduce absenteeism, and strengthen employee loyalty.

Wigmore Trading works with organisations across Africa, the UK, and international markets, helping them source the goods, equipment, and supplies needed to run efficient operations. Understanding workforce challenges is part of that journey. This article explores how the workplace nursery scheme works, why it matters, and how companies can use it to support staff while improving their bottom line.

What Is the Workplace Nursery Scheme?

The workplace nursery scheme is a government-approved benefit that allows an employer to provide nursery or childcare facilities for employees, either onsite or through a partnered nursery provider.

When offered through a compliant arrangement, childcare costs are entirely free of tax and National Insurance contributions for employees. Unlike traditional childcare vouchers—which have been phased out for new applicants—the workplace nursery scheme covers the full cost without upper limits, making it one of the most generous childcare benefits in the UK.

For companies balancing complex logistics or round-the-clock operations, this provides a practical way to support working parents who need reliable, flexible childcare arrangements close to work.

Why the Workplace Nursery Scheme Matters for Employers

1. Improved Staff Retention

A significant number of employees leave their roles after starting a family, largely due to childcare costs. By offering a workplace nursery scheme, businesses help parents return to work sooner and stay longer. This reduces recruitment costs and protects valuable experience within supply chains, warehouses, and office teams.

2. Reduced Absenteeism

When childcare is reliable and convenient, emergency absences drop. This is especially important for industries such as wholesale distribution and logistics, where consistent staffing levels are essential to meeting delivery schedules and maintaining operational flow.

3. Enhanced Productivity

Employees who are less stressed about childcare tend to be more focused, motivated, and present at work. Productivity rises when teams feel supported, valued, and able to balance work with family responsibilities.

4. Stronger Employer Branding

For companies competing for skilled warehouse operatives, drivers, administrative staff, or technical specialists, offering a workplace nursery scheme differentiates the brand. It’s a benefit that signals long-term commitment to employee welfare—an important factor for candidates evaluating job offers.

5. Tax Efficiency for Employers

The scheme delivers tax savings because employer contributions to a workplace nursery are exempt from National Insurance. These cost reductions make it an attractive benefit for both new and growing businesses.

How the Workplace Nursery Scheme Works

Step 1: Employer Sets Up a Partnership

Businesses can establish an onsite nursery or partner with an existing registered childcare provider. The partnership must comply with HMRC rules to ensure all tax benefits apply.

Step 2: Employees Enrol Their Children

Staff members can enrol their children in the nursery, with fees paid directly by the employer. Because the arrangement is tax-free, parents make significant savings.

Step 3: Employer Pays Provider Directly

The employer covers the cost of childcare and maintains a contract with the nursery. Both parties ensure that the service meets regulatory standards.

Step 4: Ongoing Management

The business monitors usage, costs, and staff participation—usually supported by the childcare provider’s administrative team.

For businesses with workers in demanding schedules—warehousing, freight handling, or production lines—this provides stability and reduces disruptions caused by inconsistent childcare.

Implementing a Workplace Nursery Scheme in Your Business

Setting up the scheme does not need to be complicated. Many nursery providers offer fully managed solutions so employers can launch the benefit quickly.

Here are practical considerations:

Assess Your Workforce Demographics

If you have a significant number of employees with young children, especially shift workers, the scheme can provide immediate value.

Evaluate Onsite vs Offsite Options

Some companies operate large warehouse sites ideal for onsite nursery facilities. Others may prefer partnering with local nurseries near main transport links.

Review Cost Implications

Although employers cover childcare fees, the tax savings offset a large portion. Many businesses find the scheme cost-neutral or even cost-positive when factoring in improved retention.

Communicate Clearly With Employees

Promote the benefit internally. Parents may not be aware of its advantages or how much they could save through tax-free childcare.

Ensure Compliance

The scheme must follow HMRC rules, which reputable nursery providers can help manage.

How Wigmore Trading Supports Employers

As a business serving companies across Africa and the UK, Wigmore Trading understands the operational challenges employers face. While we don’t run workplace nurseries directly, we support growing organisations through:

• Efficient sourcing of facility equipment for onsite nurseries

• Supply of hygiene products, cleaning materials, and furniture

• Distribution solutions for nurseries located within industrial zones

• Procurement of educational toys, learning materials, and safety supplies

Whether you’re setting up a new facility or upgrading an existing one, Wigmore Trading can help by supplying the essential items needed to keep your workplace nursery clean, safe, and operational.

Contact Wigmore Trading today to streamline your sourcing.