Employer Supported Childcare
Some employers offer Employer Supported Childcare (ESC) to help towards the costs of qualifying childcare. It is up to your employer whether they decide to offer ESC or not. There are three types of ESC:
- Workplace nurseries – This is where your employer has a nursery or crèche at your place of work.
- Directly contracted childcare – This is where your employer arranges with a commercial childcare provider to provide childcare for you.
- Childcare vouchers – This is the most common type of ESC. Your employer may give you vouchers that you can use to pay for childcare. Your employer may give you these in addition to your salary or you can choose to give up some of your salary to buy childcare vouchers (called salary sacrifice). You save tax and national insurance on the value of the vouchers.
Directly contracted childcare and childcare vouchers will be replaced by the new Tax-Free Childcare scheme once it is fully rolled out.
In this section we explain more about childcare vouchers, the most common type of ESC.