Nursery (childcare) Discount 2021 to 2022

At the Budget on Wednesday 3 March 2021 the Chancellor announced that the government would extend the Nursery (childcare) Discount scheme for one year from 1 April 2021.

Summary of the scheme

To qualify for this relief your business, in line with government guidance, must occupy a qualifying property and be:

  • an Ofsted's Early Years Register; and
  • wholly or mainly used for the provision of the Early Years Foundation Stage.

The discount scheme for the financial year 2021/2022 will provide:

  • 100% discount on your bill for the first three months from 1 April 2021 to 30 June 2021
  • 66% discount for the remaining period, from 1 July 2021 to 31 March 2022, up to a total value of the cash cap which is set at £105,000.

Cash Cap explained

The cash cap is the discount limit a ratepayer can receive across all their premises the business occupies that are eligible for relief in England.

  • The cap only applies to the 66% discount for the period 1 July 2021 to March 2022.
  • The cap is set at £105,000 and no business ratepayer in any circumstances can receive more than this.

Ratepayers, on a self-assessment basis, need to inform the council if by receiving the discount they would breach the cash cap and therefore wish to opt out of the discount being applied. This can be done by using the online refusal form below.

Do I need to apply for the discount?

The discount will be automatically awarded to businesses deemed to qualify, based on those currently in receipt of the discount applied in 2020/2021 unless the business contacts the council to refuse the discount being applied. For example, if applying the discount would breach the cash cap.

If you feel your business fits the criteria for the discount and have not had the discount applied to your bill you can apply using the online application form below.

Apply for the nursery (childcare) discount

Can the discount be refused?

Businesses may choose to opt out of support by notifying us that they wish to refuse the discount in relation to the premises their bill refers to. You can let us know if this is the case by using the form below.

Please be aware that once you have refused the discount, you cannot withdraw your refusal for all or any part of the discount period.

Refuse the nursery (childcare) discount

Billing in 2021 and 2022

You will receive your first business rates bill for 2021-22 during April 2021. This first bill will show the 100% discount which only applies for the first three months of the financial year from 1 April 2021 to 30 June 2021.

A revised bill will be issued in June 2021 with the discount reduced to 66% in line with government guidance and subject to cash cap. The 100% discount on will end on 30 June 2021. The revised bill will show the business rates payable for the period 1 July 2021 to 31 March 2022.  

How to pay

Details on paying this second bill are available on our How to Pay page.

If you wish to pay by Direct Debit you must set up a new mandate even if you have previously paid via this option. We cannot continue your previous instruction if more than 13 months have passed since the last payment was made. This would be the case for all businesses receiving the retail discount during 2020/2021.

This instruction can easily be arranged ahead before your second bill is issued in June 2021.

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