The approach

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
Father carrying his young son on his shouldersToddler playing with toysEmployees

Who is this 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 it works

How does it work?

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.

  1. The employer establishes a childcare welfare trust
  2. Contributions are made at the employer’s discretion
  3. Employees may request consideration for childcare welfare assistance
  4. Payments are made directly to registered childcare providers
  5. Employees never receive cash
  6. No entitlement or expectation is created

Consultation

Discuss employer-led childcare welfare

Share your perspective in a confidential discussion about workforce childcare support.

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HR or Recruiter

A Smarter Benefit for Staff Retention. A Win for You.

Unlock Better Childcare Support.

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.

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.

Next steps

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