The tables below illustrate the savings made when nursery fees are paid through the salary sacrifice scheme.

Please note this example is for demonstration purposes only and do not reflect the current nursery fees

University of Warwick Nursery Gross costs
	Under 2s	Over 2s
Week	£283.00	£276.50
Day	£56.60	£55.30
AM	£29.75	£29.10
PM	£26.85	£26.20

 

Costs Incurred

(1) Assume a basic rate tax payer, with a child at nursery full-time 5 days per week.

(2)Assume a basic rate tax payer, with a child at nursery full-time 3 days per week.

		(1)				(2)
Cost
Age of child	<2	2-3	>3		<2	2-3	>3
Days a week in Nursery	5	5	5		3	3	3
Tax Rate of Parent	20%	20%	20%		20%	20%	20%
Staff on Salary Sacrifice	£	£	£		£	£	£
Cost per annum over 48.4 weeks	13,697	13,383	13,383		8,218	8,030	8,030
Less government funded 15 hrs >>3yr old38 weeks3.17 p hr			1,807				1,807
Tax saving @ 20%	2,739	2,677	2,677		1,644	1,606	1,606
NI Saving @ 12%	1,644	1,606	1,606		986	964	964
Net Costs	9,314	9,100	7,293		5,588	5,460	3,653
Effective daily cost	38.49	37.60	30.14		38.49	37.60	25.16
Headline daily cost	56.60	55.30	55.30		56.60	55.30	55.30
Effective saving from salary sacrifice/ gov’t funding	32%	32%	46%		32%	32%	55%

 Please note this is an example and prices used do not reflect the current fees