For Parents

Cut your nursery bill
by up to 41%

YellowNest works with your employer to pay your nursery fees from your gross salary — before income tax or National Insurance. The savings are automatic, every single month.

Contact Us How It Works
Example: Basic Rate Taxpayer
£302
Saved every month
Monthly nursery fee£1,200
Income tax saved (20%)£240
NI saved (8%)£96
YellowNest fee−£34
Net monthly cost£898
Annual saving£3,629
Based on 2025/26 tax rates. Figures are illustrative.

Your savings depend on your tax band

The higher your salary, the more you save — because more of your income tax and NI is reclaimed.

Basic Rate · 20%
25.2%
Net saving rate
Earning up to £50,270/year. You save income tax at 20% plus NI at 8%, less our small fee.
£1,200/mo nurserySave £302/mo
Annual saving£3,629
Higher Rate · 40%
35.5%
Net saving rate
Earning £50,271–£125,140/year. Significantly larger savings as more tax and NI is reclaimed.
£1,200/mo nurserySave £426/mo
Annual saving£5,112
Additional Rate · 45%
40.8%
Net saving rate
Earning over £125,140/year. The highest savings available under the scheme — nearly half your nursery bill back.
£1,200/mo nurserySave £490/mo
Annual saving£5,874

Not sure which band you're in? Use our savings calculator →

Are you eligible?

✅ You're likely eligible if…

  • Your employer is enrolled with YellowNest (or you can ask them to join)
  • Your child attends a YellowNest partner nursery, or your nursery is willing to join
  • You are a UK employee paid via PAYE
  • The salary sacrifice won't take your pay below the National Minimum Wage
  • You have a formal nursery agreement in place

ℹ️ Good to know

  • The scheme works alongside your 15 or 30 free hours entitlement
  • It is separate from and stackable with Tax-Free Childcare in some cases
  • Self-employed parents are not eligible (PAYE employment is required)
  • If your employer is not yet enrolled, contact us — we'll reach out to them on your behalf
  • No self-assessment implications for most basic rate taxpayers

Parents ask us…

Not necessarily. If your employer isn't yet enrolled, get in touch with us and we'll contact your HR team directly to explain the scheme and handle the setup — it typically takes less than a week. There's no cost to your employer to join.
Your nursery needs to be part of our partner network. If they're not already, we can onboard most nurseries within a few days — we do all the admin. Just let us know which setting you use and we'll check and arrange it.
Your gross salary is reduced by the amount of your nursery fee. This means you pay less income tax and less National Insurance on that portion of your salary. Your payslip will show a lower gross salary, but your net take-home pay is higher than if you paid nursery fees from your after-tax salary.
If your pension contributions are calculated as a percentage of your gross salary, a lower gross salary may slightly reduce both your contributions and your employer's contributions. We recommend discussing this with your HR or pension provider before enrolling. Many employers maintain pension contributions on the pre-sacrifice salary.
Yes. The Workplace Nursery Scheme applies to whatever you pay your nursery after your free hours are deducted. So if you receive 30 hours free and pay a top-up, you can sacrifice that top-up and save tax on it too.
Once your employer is enrolled and your nursery is confirmed, savings typically start from your next payroll run. If everything is in place, you could be saving within a week of registering.
Get Started

Tell us about yourself
and we'll do the rest

Fill in the short form and a YellowNest advisor will confirm your eligibility, check your nursery, and coordinate with your employer — all within 48 hours.

  • Free to register — no commitment
  • We'll contact your employer on your behalf if needed
  • We'll check your nursery is or can become a partner
  • Savings start from your next payroll once live
  • Dedicated advisor available by phone or email