The below Parliamentary question was asked by Lucy Powell on 2014-04-03.
To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 24 March 2014, Official Report, column 26W, on nurseries, for what reasons his Department is reviewing provision of workplace nurseries; when that review will be complete; how many families access his Department’s workplace nursery provision; how much workplace nursery provision by his Department costs each year; and whether his Department claims tax relief on workplace nurseries.
Mike Penning
There are currently seven workplace nurseries in operation, by third parties, on DWP premises.
The Department’s current contracts with its nursery providers are soon expiring. Therefore, it is appropriate to review future nursery provision in general and consider whether it is appropriate and cost effective to continue to contract for on site services.
In addition, as part of its remuneration package, the Department supports employees through a salary sacrifice scheme where employees can give up part of their salary in return for childcare vouchers, which allows for significant savings through tax relief. This gives parents support in order to make their own choices for childcare. Consequently, as suitable alternatives exist, it is no longer appropriate to continue to contract for workplace nursery provision.
There are currently 361 families who access DWP’s workplace nurseries.
The cost of nursery provision:
2013/14 YTD (Feb): £29,112
2012/13: £50,693
2011/12: £80,811
2010/11: £88,494
The Department doesn’t claim tax relief on workplace nurseries
No information is held on Executive agencies and non-departmental bodies. There would be a disproportionate cost to source that information.