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Workplace playschemes

The Chancellor's December announcement of tax incentives for employers to provide childcare for staff could give a welcome boost to the development of employer-supported holiday playschemes for the first time in over a decade. Some workplace playschemes have been successfully running for many years, providing much-needed support to parents who are able to work during school holidays as a result. Yet the growth of such provision has been painfully slow, with complexities over tax limiting progress. The Chancellor's new tax breaks could give employers the boost they need, with 50 per week for approved childcare free of income tax and national insurance.
The Chancellor's December announcement of tax incentives for employers to provide childcare for staff could give a welcome boost to the development of employer-supported holiday playschemes for the first time in over a decade.

Some workplace playschemes have been successfully running for many years, providing much-needed support to parents who are able to work during school holidays as a result. Yet the growth of such provision has been painfully slow, with complexities over tax limiting progress. The Chancellor's new tax breaks could give employers the boost they need, with 50 per week for approved childcare free of income tax and national insurance.

In the apparent desert of workplace playschemes, there are some exceptions.

Ironically, Government itself provides some of the longest standing playschemes for staff. Walk into DfES Westminster offices during any school holiday and the distant buzz of children's voices can be heard. Many local authorities have also chosen to provide for staff alongside big name private sector employers as HSBC and Asda. For all of these organisations the rationale is not the result of a soft option - more the hard business decision that enables staff to work more productively and to remain loyal.

But the majority of these schemes were established over a decade ago - the result of projected staff shortages in the face of a demographic time bomb that turned into a bit of a damp squib. Now is the time for employers to take notice of the gains other companies have been benefiting from.

The Chancellor has just opened the door for employers to take the initiative - to make the bold move to become a leading light in supporting childcare for their staff.