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Child Care

Childcare support that fills the gaps

Funded hours help, but they don't cover every hour, every holiday or every family. Give working parents a flexible childcare budget for nursery top-ups, childminders, wraparound care and holiday clubs.

Support your working parents

Childcare is a workforce issue

Funded hours have helped, but they don't cover everything. Full-time nursery costs for three- and four-year-olds rose 9% in England this year, and prices keep climbing in Scotland and Wales. (Coram Childcare Survey 2026)
67%

of under-fives are in formal childcare

That's around 2 million children in England. For most working parents, childcare is what makes work possible.

Source: DfE, Childcare and Early Years Survey of Parents 2025

23%

have quit a job or study over childcare costs

When childcare doesn't add up, talent walks out of the door.

Source: Theirworld, 2023

75%

feel guilty or anxious taking time off for childcare

Unplanned absences weigh on performance and wellbeing. Flexible support takes the pressure off.

Source: Remote, Working Parents Survey 2023

Great talent is built on a foundation of support

When you show up for your team's life outside of work, they bring more focus, loyalty and dedication to their work inside it. A Child Care budget helps parents cover the costs funded hours don't.

Nursery and Pre-school

Nursery & Pre-school

Top-ups beyond funded hours, extra days

Childminders and Nannies

Childminders & Nannies

Registered childminders, nannies

Wraparound Care

Wraparound Care

Breakfast clubs, after-school clubs

Holiday Clubs

Holiday Clubs

Summer, half-term and holiday clubs

Custom Bundle

Mix and match what your team needs.

Build Bundle

Three ways to support childcare, and how HMRC sees each one

Not all childcare support is taxed the same way. Here's the difference in plain English, and where SideUp fits in.

Without a partnership

Child Care budget

Lifestyle benefit

Taxable

What it covers

Nurseries, childminders, nannies, wraparound care and holiday clubs.

How it works

You set a monthly budget. Parents pay any eligible provider with their SideUp card.

SideUp's role

Runs the whole benefit for you.

If you have a partnership

Nursery Partnership

Section 318 ITEPA 2003

Tax-free, if the conditions are met

What it covers

Registered nursery settings only. Care in a private home, such as a childminder, doesn't qualify.

How it works

Your company partners with a nursery and genuinely shares its financing and management. It can run through salary sacrifice.

SideUp's role

Pays your partner nursery directly, with every payment tracked.

Closed to new joiners

Childcare vouchers

Includes directly-contracted childcare

Tax-free, legacy members only

Who can use it

Employees who joined their employer's scheme before 4 October 2018 and have stayed in it.

Worth knowing

Parents still receiving vouchers can't use the government's Tax-Free Childcare at the same time.

SideUp's role

Not offered. Existing schemes stay with your current provider.

Works alongside government support. A SideUp Child Care budget can sit on top of funded hours and Tax-Free Childcare, which adds up to £2,000 a year per child.

A summary, not tax advice. Check your arrangement with a tax adviser.

See How SideUp Works in 4 Easy Steps

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01.

Choose your benefits

Decide which benefits you want to offer and who they apply to.
02.

Implement your policy

Set your budget, eligibility rules, and spending limits. Our platform handles the compliance and guardrails automatically.

03.

Connect to payroll

Seamlessly integrate with your existing payroll provider. We handle the tax implications and reporting for you.

04.

Join the SideUp platform

Invite your team. They get their cards, you get the credit for being an amazing employer. Everyone wins.

Set it up once. Your team feels it every week.

Most spending happens on the card, so there's almost nothing to chase. Here's how it works, from day one.

  1. 1

    Add your employees

    Sync your team from your HR system, or add them manually. Either way, it takes minutes.

  2. 2

    Set up your programme

    Choose your benefits, decide when they're paid out, and pick how your company funds them.

  3. 3

    We invite your team

    SideUp emails each employee an invitation to the app. Once they've completed onboarding, their card is issued.

  4. 4

    Manage it month by month

    Track spend and take-up, and keep your compliance information in one place, ready whenever you need it.

SideUpChild Care
Laura Bennett•••• 3157

After-school club

Paid on Monday

£72.00

Holiday club

October half-term

£185.00

Child Care budget this month

£257 of £300

Illustrative example

REAL IMPACT, MEASURED IN RESULTS

The numbers don't lie

Based on SideUp’s internal research comparing clients with vs. without flexible stipends. When you give employees choice, the numbers speak for themselves.

eNPS Points
+35
eNPS Points
Clients using SideUp consistently score +35 points higher than those relying on standard perks.
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Profit
+ 23%
Profit
Employees who are happy with their benefits are more productive and can increase a company’s revenue by up to 23%.
ROI
10x
ROI
For every $1 spent on SideUp stipends, companies save $10 in retention costs and productivity gains.
The SideUp Marketplace

Every pound goes further. And stays local.

Our marketplace brings your team closer to the independent cafés, gyms, shops and services in their own neighbourhood. When they spend their SideUp budget there, they unlock exclusive discounts and freebies, so the same benefit buys more.

✓

Exclusive discounts for SideUp members

✓

Freebies and extras from local partners

✓

Your benefits budget, backing local businesses

A Saturday on the high street

The Corner Café

£8.95

Marketplace discount

−£1.35

Northside Yoga Studio

£12.00

Free mat hire

Freebie

Saved this month

£9.60

Illustrative example

FAQ

Frequently Asked Questions

Everything you need to know about Child Care benefits in the UK.

What does a Child Care benefit cover?

Nursery and pre-school fees, registered childminders and nannies, breakfast and after-school clubs, and holiday clubs. You choose which categories are eligible.

Is a Child Care benefit taxable?

Yes. Child Care is a Lifestyle benefit, so it's treated as a taxable benefit in the same way as your other Lifestyle benefits. In return, it gives you full flexibility over which providers and types of care your team can use.

Are there cases where childcare support isn't taxable?

Yes, HMRC sets out three. Workplace nurseries, run by the employer alone or in a genuine partnership where the employer shares the financing and management, are exempt from tax and National Insurance, including through salary sacrifice. Childcare vouchers and directly-contracted childcare are also exempt, but only for employees who joined their employer's scheme before 4 October 2018 and have stayed in it. Each exemption comes with strict conditions, so SideUp's standard Child Care benefit is a flexible, taxable Lifestyle benefit.

We have a nursery partnership. Can SideUp pay the nursery?

Yes, through Nursery Partnership. If your company has a workplace nursery partnership with a registered nursery, SideUp can be your payment rail: we pay your partner nursery directly, with spending restricted to that nursery, so every payment has a clear audit trail. Whether those payments are exempt from tax depends on your partnership meeting HMRC's conditions under section 318 ITEPA 2003, not on how they're paid, so we recommend confirming your arrangement with your tax adviser.

Does it work alongside funded hours and Tax-Free Childcare?

Yes. Funded hours cover a set number of hours, mostly in term time, and Tax-Free Childcare adds up to £2,000 a year per child. Tax-Free Childcare is only off-limits to parents still receiving childcare vouchers or directly-contracted childcare, and a SideUp Child Care budget is neither. Employees should check their own eligibility on GOV.UK.

How much should we offer?

You decide. Set a monthly budget per employee, and choose who it applies to.

Does a Child Care benefit help with retention?

Yes. Working parents are more likely to stay when their employer helps with the realities of childcare, and more likely to leave when it doesn't.

How does SideUp handle it?

Employees pay eligible providers with their SideUp card, within the budgets and categories you set. Every payment is tracked automatically.

Show working parents you've got their back

Ready to modernise your benefits?

Join hundreds of forward-thinking companies using SideUp to attract and retain top talent. Book a demo to see Child Care in action.