Workers in London are increasingly prioritising practical benefits like on‑site childcare and meal vouchers over salary increases as the cost‑of‑living squeezes household budgets.
According to the latest Salary Guide from international recruitment firm Robert Half, 43 per cent of professionals in the capital said access to on‑site childcare would influence whether they stay with their current employer or accept a new role, while 64 per cent cited meal voucher availability as a factor in job decisions.
The data reflects mounting financial pressures in London, where childcare costs are among the highest in the UK and everyday expenses continue to rise. The involvement of employers in offering targeted benefits is emerging as a key differentiator in the labour market.
Childcare Costs Driving Demand
The report highlights the growing importance of family‑friendly perks within recruitment and retention strategies. With large numbers of London professionals citing on‑site childcare as influential, the implication is that employers who fail to adapt risk losing talent or facing diminished engagement.
Independent analysis confirms the steep cost burden of childcare in the capital. Research by daycare provider Hatching Dragons indicates that parents in London can pay anywhere from £70 to £150 a day for full‑time nursery care. National averages in England suggest a weekly cost of around £238.95 for full‑time nursery for children under three.
Workplace‑based childcare support therefore has clear potential to reduce costs for employees and improve uptake of roles among working parents.
Additionally, broader childcare research shows that reliable childcare enables parents to work. A Department for Education survey last year found that 64 per cent of mothers with children aged 0‑4 said reliable childcare had helped them to work.
Meal Vouchers Gain Ground
Meanwhile, London workers are placing growing value on meal vouchers. The Robert Half figures show that 64 per cent of professionals said access to such vouchers would influence their job‑move decisions. Food and lunch costs in the capital remain among the highest in the UK, and meal vouchers are seen not simply as a perk but as meaningful financial relief that can help with everyday spending.
Phil Boden, market director at Robert Half, said “our latest data shows a clear shift in what London professionals value most from their employers. With rising costs continuing to impact households, employees are looking beyond traditional pay rises for benefits that deliver real, everyday support.”
He added that providing meal vouchers and childcare was not just about standing out in a competitive market but also about building loyalty, engagement and workforce resilience.
Rising to the Challenge
For employers looking to respond to the trend, experts say practical steps can be taken to strengthen their benefit offers and align them with what employees now value.
- Offer accessible childcare support. Options might include establishing on‑site childcare or entering partnerships with external providers. Employers should also explore salary‑sacrifice schemes or paying upfront deposits to reduce cost burdens for staff. A report by BusinessLDN makes clear that “workplace nursery partnerships through salary sacrifice give more parents access to significant savings on childcare costs”.
- Introduce meaningful meal support. Implementing meal voucher schemes or on‑site subsidised dining can relieve cost pressure and improve uptake. Employers should assess whether a voucher scheme is feasible and validate its appeal for staff.
- Tailor benefits to the cost‑of‑living context. Organisations should review their total rewards offer and identify benefits that mitigate everyday cost pressures. Communicating how these perks support employees financially improves perceived value.
- Promote awareness and uptake. Offering new benefits is not enough; employers must ensure staff know about them and understand how to access them. Clear communication and inclusive eligibility criteria are vital.
- Monitor outcomes and feedback. HR and wellbeing teams should track how benefits affect retention, job‑satisfaction and talent attraction. Surveys, exit interviews and uptake data can help refine the approach.
From Pay To Practical Perks
The change in employee priorities – from salary increases to cost‑saving and practical support – reflects broader trends around cost of living and work‑life balance. In London especially, where premium costs for childcare and daily living are high, the value of employer‑provided perks is amplified.
Employers, say experts, should recognise that offering on‑site childcare and meal vouchers is no longer optional but is becoming a critical component of employee value propositions. Firms that move proactively will be better placed to attract and retain talent in a competitive market where benefits matter just as much as salary.