Top 10 Ways Employers Can Respond to the UK Childcare Challenge

In a recent webinar hosted by Bright Horizons, experts discussed various strategies that employers can adopt to support their employees' childcare needs.

The session, led by Jennifer Lister-Smith, Kerri Haseman, and Paul Quartly, provided valuable insights into the role of employers in supporting working parents and the broader implications for businesses and the economy.

The Importance of Childcare Support

Childcare is not just a personal issue for parents; it's a critical component of the workforce infrastructure. The pandemic underscored this reality, revealing how essential reliable childcare is for maintaining productivity and enabling parents to work effectively. With recent government initiatives to increase funding for childcare, the landscape is evolving, but challenges remain in accessibility, affordability and availability of high quality childcare.

Successive UK governments have rolled out funding to support childcare for most working parents, including the recent 15 hours per week for children from 2 years in Spring 2024 and then for children from nine months old in September 2024, expanding to 30 hours (for children 9 months to 4 years) by September next year. Despite these efforts, many parents still struggle with the cost and availability of quality childcare, particularly as the funded hours cover only ‘term-time’ or 38 weeks a year. This is where employers can make a significant impact.

From financial subsidies to practical solutions like workplace nurseries and Back-Up Care. These measures not only help parents manage their responsibilities but also enhance employee retention, reduce stress, and boost productivity.

Here are 10 key ways employers can respond effectively:

1. Workplace Nurseries

Workplace nurseries provide convenient, high-quality childcare solutions either onsite or near the workplace. A workplace nursery scheme offers significant tax and national insurance (NI) savings, making them an attractive option for both employers and employees. By providing a reliable childcare option close to the workplace, employers can help parents manage their work and family responsibilities more effectively. For employers, with NI set to rise in April 2025, supporting employees through salary sacrifice schemes is more attractive than ever.

2. Childcare Subsidies

Employers can offer financial support by contributing to their employees' nursery fees. This approach helps make childcare more affordable and accessible. Subsidies can be structured in various ways, such as covering a percentage of the fees or providing a fixed amount. This financial assistance can greatly reduce the burden on working parents.

3. Back-Up Care

Back-Up Care programmes provide emergency childcare solutions when regular arrangements fall through. This service is crucial for parents who face unexpected disruptions, such as a sick child or a sudden unavailability of their regular caregiver. Back-Up Care ensures that employees can still meet their work commitments without the added stress of finding last-minute childcare. Discover more about Back-Up Care with Bright Horizons.

4. Holiday Care

School holidays often pose a significant challenge for working parents. Employers can offer holiday care programmes to cover these periods, ensuring that parents have reliable childcare options when schools are closed. This support helps parents manage their work schedules without having to take extended leave during school holidays. Most Bright Horizons clients add school holiday clubs to their Back-Up Care options.

5. Virtual Tutoring

The pandemic highlighted the need for academic support for children. As part of Back-Up Care, employers can provide virtual tutoring services to help children with their studies, particularly in subjects where they may have fallen behind. This support not only benefits the children but also allows parents to focus on their work, knowing that their children's educational needs are being met. Employers putting this support in place see it as enabling parents to be mentally and emotionally present at work, as well as physically present.

6. Flexible Working Arrangements

Flexible working is one of the most popular forms of support among employers. Allowing employees to have control over their work schedules can significantly reduce the stress associated with balancing work and family responsibilities. Flexible working arrangements can include options such as remote work, flexible hours, part-time working, job shares and compressed workweeks.

7. Inclusive Family Support

Family support should extend beyond childcare to include elder care, pet care, and other family responsibilities. Employers increasingly recognise the diverse needs of their workforce and offer solutions that cater to different family structures and life stages. This inclusive approach ensures that all employees are supported, and enabled to progress their careers alongside their lives, regardless of their specific family situation.  Discover elder care and pet care with Bright Horizons.

8. Employee Assistance Programmes (EAPs) and advice lines

EAPs can provide valuable resources and support for employees dealing with family-related issues. These programmes can offer counseling, legal advice, and other services that help employees manage their personal and professional lives more effectively. Many benefits providers also provide access to specialist advice and support such as the Speak To An Expert services through Bright Horizons’ Work+Family Space portal. By providing access to expert advice and support, employers can help reduce the mental load on working parents.

9. Parental Leave Policies

Enhanced parental leave policies can make a meaningful difference in supporting working parents of all genders. Employers can offer extended fully paid periods of maternity, adoption and paternity leave, as well as enhanced shared parental leave options. Gender-inclusive policies that provide equal leave opportunities for parents regardless of their family role can help balance caregiving responsibilities and support career progression for all employees.

10. Creating a Supportive Culture

A supportive workplace culture where family needs are acknowledged and prioritised can greatly enhance employee wellbeing and retention. Employers should encourage open communication about family responsibilities and provide a solution-focused environment where employees feel comfortable discussing their needs.

In Conclusion

The UK childcare challenge requires a multifaceted approach from employers. Childcare is increasingly seen not only as a place for children to be while parents work, but as a vital aspect of early education during the most formative years of life. By implementing the strategies outlined here, employers can support their employees' childcare needs, enhance productivity, and improve overall employee satisfaction. As the landscape of work and family life continues to evolve, proactive and inclusive childcare solutions will be key to attracting and retaining top talent.

For more information, or to discover the experiences of Bright Horizons’ clients – visit our website.