Feel The Benefit, in plain English.

Feel The Benefit is built on more than a decade of Workplace Nursery salary sacrifice experience. A fully managed service on modern technology, for employers of any size.

Feel The Benefit, in plain English.
What the scheme is

Nursery fees from gross pay, not net pay

Through a Workplace Nursery Scheme, nursery fees are paid from salary before Income Tax and National Insurance are deducted, rather than from take-home pay. Same nursery, same hours, same child; significantly lower cost.

The mechanism is the Cycle to Work scheme applied to nursery fees. It is recognised under ITEPA 2003 Part 4 Chapter 6 and has been a part of UK tax law for decades. It is not aggressive tax planning. It is a benefit the legislation specifically permits because it supports working parents.

There is no cost to join for employers or employees. In most cases the employer also saves thousands through reduced Employer’s National Insurance contributions.

The Numbers

Average full-time UK nursery fees

According to the Coram Childcare Survey 2025, the average full-time nursery place costs:

Over £1,200 per month — outside South East England
Around £1,700 per month — in South East England
Up to 56% savings available through salary sacrifice
No monthly cap — the more you earn, the more you save

How the money actually flows

Every month, three things happen, in this order. There is no credit facility — fees are always collected and paid for the month ahead, keeping fund flow clean and fully auditable.
1
Your company is invoiced for the nursery fees
We issue a clear invoice showing the nursery fees due for the following month, together with the employer contribution required under the Workplace Nursery exemption.
2
Funds are collected by Direct Debit
Feel The Benefit collects the invoiced amount by Direct Debit. Funds are held in a designated client account, separate from our operating account, until payment is made to the nursery.
3
We pay the nursery directly, before the month begins
The nursery receives payment in full before the month for which fees are due. No late payments, no credit risk, and a predictable schedule the nursery can rely on.
Compliance

The boring-but-important details

The Workplace Nursery exemption is set out in the Income Tax (Earnings and Pensions) Act 2003, Part 4 Chapter 6, and HMRC has published guidance on operating the scheme for over twenty years. Our setup, documentation and ongoing administration are designed to follow that guidance.

We are Feel The Benefit Ltd, registered in England & Wales as company number 17024030. We are registered with the Information Commissioner’s Office as a data controller, registration number ZC135441. All employer and employee data is handled under the UK GDPR, encrypted in transit and at rest, with multi-factor authentication on all administrator accounts.

Professional indemnity insurance is provided by Royal & Sun Alliance. If you need the policy specifics for your due diligence file, contact us and we will send them over.

Safeguarding of funds. Sacrificed funds sit in a designated client account, separate from the company’s operating account, between payroll run and nursery payment.

Leaving the scheme. Any in-flight period is settled on the standard cycle. There are no exit fees and no minimum term.

Integrations

Works with your existing payroll

We integrate with Sage, Moneysoft, Xero, Workday and dozens of other UK payroll platforms. Where a client uses something less common, our open API allows direct integration.

Sage — all major versions
Xero — payroll module
Moneysoft — Payroll Manager
Workday — HCM integration
IRIS and other bureau platforms
Open API for custom integrations

We are supporters of the Greater Manchester Good Employment Charter and members of the Better Business Network. Read more about our commitments.

Credentials & accreditations

Fully managed

What you actually have to do, and what we handle

“Fully managed” gets used a lot in B2B services. Here is what it means in practice. Typical setup time from signed agreement to first payroll run: around a week. Typical ongoing admin per month, once running, for the employer: under 30 minutes.

Fully managed: who handles what
What we handle What you do
✓ Scheme design and documentation Tell us your headcount and nursery-using employees
✓ HMRC compliance setup Sign the participating employer agreement
✓ Payroll software integration Confirm your payroll software to us
✓ Nursery liaison and onboarding We can let your staff know they have access to the scheme
✓ Employee enrolment dashboard Approve scheme enrolment requests (one click is all it takes!)
✓ Monthly reconciliation and audit trail Nothing for you to do
✓ Ongoing employee queries Leave that to us
✓ HMRC documentation We take care of this
✓ Reporting All available in a single click

Feel The Benefit, by the numbers

What the scheme delivers for employers and families.
56%
Maximum saving on nursery fees through salary sacrifice — achievable in the highest earner band.
£1,200+
Average monthly full-time nursery fee in the UK outside the South East (Coram, 2025).
2011
Our Experience in Providing the Workplace Nursery Benefit dates back to 2011.
Zero
Cost to set up or run the scheme for employers. Our fee comes from the tax savings generated.
Our Mission

Why we built Feel The Benefit

A decade of administering Workplace Nursery schemes made one thing very clear. The scheme works, the savings are real, and the families who use it stay in work as a direct result. But there is room for improvement. Setting a scheme up has historically meant forms, spreadsheets, and slow interfaces, with an admin overhead that can put off smaller employers off entirely. The result is that a benefit the legislation was specifically designed to make widely available has stayed in the hands of large employers with HR teams to run the paperwork.

Feel The Benefit exists to change that. Quick loading pages, fully automated systems, easy for employers and employees to (ahem) Feel The Benefit of saving thousands of pounds on nursery fees through a managed salary sacrifice nursery scheme that is set up in days allowing employees to be making savings from their next pay. The saving mechanism is unchanged. The friction around it is gone.

Our Story and Ambitions

The Research

Why this matters for working families

Research published by the Office for Budget Responsibility highlights a 9:1 ratio of mothers to fathers leaving employment to look after their children — a pattern strongly linked to the gender pay gap and the high cost of childcare.

A Workplace Nursery Scheme addresses this problem directly. By making nursery care significantly more affordable, employers can help retain skilled staff who might otherwise leave employment because childcare costs make it financially unworkable to stay.

Behind Feel The Benefit

Built on experience

Feel The Benefit was founded by Vic Johnston. Before founding Feel The Benefit, Vic was a director for many years at an employee benefits provider whose schemes were used by employers ranging from one-person businesses to multinationals with thousands of staff.

Alongside the hands-on experience, Feel The Benefit benefits from a board of advisors and investors who bring additional expertise in finance, employment law and technology. That combination of hands-on scheme experience and wider strategic backing is whay has allowed the FTB platform to be an absolute class leader in terms of performance and ease of use.

There is considerable experience in our team and we are always happy to help.

Connect with Vic on LinkedIn

Vic Johnston, Founder and Director of Feel The Benefit Ltd

Vic Johnston, Founder & Director

Questions we hear most

No. The scheme works with the nursery your employee already uses, assuming it is registered with Ofsted (or the equivalent regulator in Scotland, Wales and Northern Ireland). We handle the nursery liaison so the employee does not have to.
You sign the contract and you can invite your employees immediately, as soon as the nurseries you are partnering with sign up, savings can commence from the following pay day!
Nothing to set up, nothing to run. Our fees come from the tax savings generated, and are clearly shown in the savings calculators, so the scheme is genuinely self-funding.
Call us directly on 0800 888 6629. There is no support tier system, no ticket queue to join, our phones are answered during office hours by our UK based staff.

Want to talk?


The fastest way to find out whether Workplace Nursery would work for your business is to ask. Call 0800 888 6629 or use the form below and we will come back to you the same working day.

Fully managed from day one
No set up fees
Dedicated support throughout

Got a Question?

Call us on 0800 888 6629 or
email info@feelthebenefit.co.uk

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