Speaking at a conference on employer-supported childcare last week, minister for children Margaret Hodge said that many employers 'don't see supporting childcare as a business concern'. In fact, companies had withdrawn from participation compared with six or seven years ago, she claimed, and only 2 per cent of childcare was funded by employers.
Mrs Hodge flagged up the new 50 per employee per week salary sacrifice scheme that will come into operation next April. 'We need employers to take it up and champion it,' she added. She also urged Regional Development Agencies to work out childcare strategies, following the lead of the London Development Agency (LDA).
The conference, organised by the LDA, Daycare Trust and Bright Horizons Family Solutions, looked at the experience of employers in the United States, where there is far less government funding. BHFS chief executive officer Dave Lissy examined the childcare 'trilemma' of quality, affordability and accessibility.
Last year, BHFS, which has more than 500 nurseries in the US, UK, Canada and Ireland and works with more than 400 employers, carried out an investor impact study in the US which found that employers who supported staff's childcare needs had a 50 per cent reduction in employee turnover and a 97 per cent retention of top performing staff, and made significant cost savings in reduced absenteeism and turnover.
BHFS, which now has 80 UK workplace nurseries, is to carry out a similar survey here. A good practice guide for employers will be published, drawing on lessons from the conference.