Creating Sustainable Workplace Nurseries

As UK employers continue to navigate the post-pandemic return to office, workplace nurseries are gaining traction as a strategic solution for talent retention, employee wellbeing, and community engagement. According to Bright Horizons’ Modern Families Index:

• 68% of working parents are concerned about returning to the office.
• 76% consider childcare arrangements before accepting a new job or promotion.

Workplace nurseries offer a practical, high-impact solution, helping parents stay focused, reducing stress, and enabling career progression.

In our recent webinar, Supporting your people to return to office – the role of workplace nurseries, Harvey Lay, Commercial and Property Director at Bright Horizons, shared his expertise on how organisations can successfully implement and sustain workplace nursery solutions.

With nearly ten years at Bright Horizons, Harvey leads a team responsible for managing almost 300 nurseries across the UK. His remit covers asset management, lease negotiations, property development, mergers and acquisitions, and facilities management.

“We cover all aspects of the portfolio, from rent reviews and property management to organic openings and acquisitions,” Harvey explained. “We also handle capital investment and facilities management, including compliance and maintenance. It’s a full-spectrum approach to supporting clients.”

Flexible Models for Nursery Provision

For many organisations, a workplace nursery is a smart financial move. It is important to remember that tax and National Insurance (NI) exemptions apply under HMRC’s workplace nursery scheme, and employees can save 30–42% on childcare costs via salary sacrifice.

Harvey outlined the most popular models for workplace nursery implementation:

• On-site nurseries: Employers provide space on their premises, which Bright Horizons can fit out and manage.
• Near-site nurseries: Bright Horizons may lease or acquire nearby properties, with employers underwriting a portion of the places.
• Community partnerships: Employers reserve places in existing Bright Horizons nurseries, benefiting from tax exemptions while contributing to local childcare infrastructure.

“If Bright Horizons were to procure a new nursery nearby, and the employer wanted 40–50% of the places, they’d typically pay that proportion of the rent,” Harvey said. “That often aligns with their National Insurance savings, making it cost-neutral.”

He emphasised that financial involvement, whether through underwriting places or providing space, is key to qualifying for HMRC’s workplace nursery tax exemption.

“There are various models,” he noted. “If the employer provides space on their premises, they may not need to underwrite places. Their contribution is the space itself.”

Designing for Children and Staff

Harvey stressed the importance of thoughtful nursery design, whether repurposing existing buildings or constructing new facilities:

“We look at room sizes for babies, toddlers, and preschoolers, and ensure the layout supports nappy changes, milk kitchens, and toilets directly off the rooms,” he said. “We also prioritise access to outdoor space, ideally free flow into gardens or creative alternatives like deck spaces.”

He added that location and accessibility are critical:

“Any space needs to be convenient for both parents and staff. We assess public transport, parking, and drop-off facilities to ensure it works for everyone.”

Demographic Studies and Community Impact

Harvey also discussed how Bright Horizons uses demographic analysis to ensure nursery sustainability:

“We use specialist software to assess local demand, looking at working parents, children aged 0–4, and existing nursery saturation,” he explained. “We want to make sure our nurseries are sustainable and competitive long-term.”

This data-driven approach helps employers understand whether a nursery can serve both their workforce and the wider community.

Partnership and Co-Investment

Harvey highlighted that Bright Horizons often co-invests with employers to create nursery spaces:

“Some solutions involve joint investment. Perhaps the employer provides the shell, and we contribute to the fit-out,” he said. “It’s a partnership approach, and we guide clients through different financial models to find what works best.”

He also emphasised the importance of ongoing engagement:

“We support quarterly management meetings to demonstrate operational involvement. It’s about showing that the employer is embedded in the nursery’s success.”

Start Planning Your Workplace Nursery Today

Workplace nurseries are more than a benefit - they’re a strategic investment in people. If you're an employer looking to:

• Attract and retain top talent
• Support working parents with meaningful benefits
• Improve productivity and wellbeing
• Take advantage of significant tax and NI savings

…then now is the time to explore workplace nursery solutions.

Contact Bright Horizons to schedule a consultation and discover how a tailored nursery model can work for your organisation - on-site, near-site, or in partnership with the community.

Want to explore the business case, setup options, and impact of workplace nurseries? Download our solutions guide.

Let’s build a future where work and family truly work together.