Employer-Funded Childcare Support
A discretionary welfare approach for real working families
PowerStone Accountants works with employers to implement bespoke childcare welfare arrangements, structured through discretionary trusts, enabling employers to provide discretionary childcare welfare support as a workforce welfare measure, without creating contractual benefits or ongoing obligations.
This is not a scheme and does not replace or interact with government childcare support.
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What this approach is (and isn’t)
What it is
- An employer-led welfare arrangement
- Implemented via a discretionary trust
- Payments made only to registered childcare providers
- Entirely non-contractual
- Operated at the employer’s discretion
What it is not
- Not a cash allowance
- Not a salary benefit
- Not a government childcare substitute
- Not a standardised or promoted scheme
- Not designed around income thresholds or tax bands
Who this is suitable for?
This approach is commonly used by employers who want to:
- Support employees returning from maternity or parental leave
- Retain skilled staff working part-time
- Help make childcare more affordable for working households
- Avoid fixed childcare benefits or contractual commitments
- Maintain flexibility over future support
This is a workforce retention and welfare tool, not a tax product.
How does it work?
- The employer establishes a childcare welfare trust
- Contributions are made at the employer’s discretion
- Employees may request consideration for childcare welfare assistance
- Payments are made directly to registered childcare providers
- Employees never receive cash
- No entitlement or expectation is created
Government childcare support (free hours, Tax-Free Childcare, etc.) continues separately.
Any tax efficiency arises only as a consequence of the welfare design and the absence of employee entitlement.
Discuss employer-led childcare welfare
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A structured way for employers to support childcare costs.
Any tax efficiency arises only as a consequence of the arrangement’s welfare design.
Power2Play is an employer-led childcare welfare arrangement, structured through a discretionary trust, enabling employers to provide discretionary welfare support towards nursery childcare costs in a compliant, non-contractual way.
Any tax efficiency arises only as a consequence of the welfare design and the absence of employee entitlement.
This isn’t a financial product – it’s a retention, wellbeing, and recruitment advantage for your clients or colleagues.
PowerStone Accountants acts solely in an advisory capacity. Each arrangement is implemented on an employer-specific basis and requires bespoke consideration of legal, tax, and employment circumstances.
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