The not-for-profit network, which was set up in December, will raise the capital costs towards the new-build Scandinavian-style timber facilities from investment partners. An employer, or several in one area, could buy places in a nursery at no net cost to themselves as they would be free to set fees individually. The capital costs would be repaid through a fixed profit margin of 15 per cent.
The chairman of the Employers Childcare Network, Jonathan Blain, said 180 employers had shown an interest in the scheme, including those representing local authority employees, and that the network had visited 120 firms and also had held talks with organisations such as the TUC. He said the network's scheme was designed to overcome the problems faced by privately-owned nurseries 'where you have the vagaries of numbers going up and down and having to compete with other nurseries'.
Mr Blain added, 'We are a completely demand-driven organisation. We will only create nurseries if employers ask us to. There is over-capacity in some areas, but under-capacity in others. We don't want to conflict with existing provision but to plug gaps.'
He said that one employer in Skegness, Lincolnshire, had approached the network with a request to buy 40 places in a workplace nursery. 'We are now going to other employers in the area and offering a further ten places.
Once they agree to buy the places, the employers are committed to paying for them,' Mr Blain added.
Stephen Burke, director of the Daycare Trust, described it as 'a very attractive proposition for employers'. But he added, 'The question is, will it deliver affordable, quality childcare for all employees, where they want it?'
Mr Blain said the employer-based childcare would meet the criteria to qualify as workplace nurseries and so would enjoy generous tax exemptions under the new childcare tax regime as long as all employees in a company were offered help with childcare.
Mr Blain added, 'Our belief is that companies should be doing this as much for their own benefit as their employees. We have done a lot of research and found that, even if there were no tax benefits, it would still make good business sense for all employers to make provision.'
