Save up to 41% on
your nursery fees.
The Workplace Nursery Scheme lets you pay for childcare straight from your gross salary — before tax or National Insurance. YellowNest handles every step, so you just save.
Check your employer is signed up
The scheme runs through your employer. If they haven't joined yet, forward them our employer page — most sign up within a day and there is no cost to them. YellowNest handles the entire setup.
You sign a salary sacrifice agreement
YellowNest sends you a simple salary sacrifice agreement setting out the amount to be sacrificed each month. You sign digitally — no paperwork, no solicitor, no lengthy forms to fill in.
We verify your nursery
Your child's nursery must be a YellowNest partner. If they're already in our network, you're ready immediately. If not, we contact them on your behalf — most nurseries join within a few days.
Your gross salary is reduced each month
Your payslip shows a lower gross salary — reduced by your nursery fee amount. Because the deduction happens before tax, you pay income tax and National Insurance on a smaller number, saving you money instantly.
YellowNest pays your nursery directly
We collect the sacrificed amount and transfer it straight to your nursery on the agreed date every month. You don't handle any payments — your childcare fees are simply covered, automatically.
You keep the savings every payday
Because your taxable pay is lower, your take-home pay is higher than it would have been paying nursery fees out of net salary. The saving shows up in your bank account every month, for as long as your child is enrolled.
What you actually save
If you're a basic rate taxpayer (income under £50,270), your salary sacrifice saves you income tax at 20% and National Insurance at 8% — a combined saving of 25.2% on every pound you sacrifice.
Higher rate taxpayers (income £50,271–£125,140) save income tax at 40% plus National Insurance at 2% — a total saving of 35.5% per pound. On £1,200/month that's over £5,100 a year.
Additional rate taxpayers (income over £125,140) save income tax at 45% — for a combined saving of 40.8%. Sacrificing £1,200/month saves over £5,900 per year after any service fee.
Who is eligible?
Children up to age 5
The Workplace Nursery Scheme applies to children attending a nursery from birth up to the point they start school — typically their fifth birthday. It is not limited by hours attended.
Employees only (not self-employed)
You must be employed through a PAYE payroll. Self-employed individuals and sole traders cannot access salary sacrifice. If your partner is employed, they may be able to use their own employer's scheme.
Your employer must be enrolled
The scheme requires your employer to partner with YellowNest. If yours hasn't, you can refer them — the setup takes one day, costs them nothing, and saves them National Insurance too.
Works alongside free hours
The Workplace Nursery Scheme is separate from your 15 or 30 government-funded hours. You can use both at the same time — salary sacrifice applies to the fees you pay on top of your free hours entitlement.
Ready to start saving?
Register your interest and we'll check your employer's status, verify your nursery, and walk you through the salary sacrifice agreement — usually sorted within 48 hours.