HSBC is to offer all its workers nursery places and childcare vouchers for children up to the age of 16, it was announced today.

The bank said it will double the number of workplace nurseries it provides to at least 170 as well as offering vouchers to employees who wanted another form of childcare.

HSBC said it will be the first company in the country to make the offer to all its staff and said the scheme effectively amounted to a 6.5 per cent pay rise.

All 57,000 staff will be eligible, including those working for HSBC's 24-hour banking service First Direct. Around half the bank's workers have children under the age of 16.

Under the new scheme workers will be able to choose nursery places or childcare vouchers, or both, instead of salary. The bank said the scheme will be exempt from tax and national insurance payments which will save workers money.

Sue Jex, head of employee support, said the bank had been offering childcare support since 1988. "Our nurseries have proved so popular that we have waiting lists."

"We are working with a number of national nursery chains to at least double the number of workplace nurseries available to the under fives.

"The new voucher scheme will not only allow more parents and carers access to subsidised childcare, but is flexible.

"Because vouchers also cover care for youngsters up to 16, the benefits go on for much longer."

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