Child care

[BigPlans2010]

Hi all.

When it comes to affording a baby I'm not worried about the mat leave or general costs. After looking at local nursery prices, I don't see how anyone affords it! It would cost about 90% of one of our wages.


How on earth do you do it??

 

[GersPrincess]

With my first 2 it practically crippled me! Back then, working tax credit would only pay 70% off up to a maximum amount of £140 a week for both children. As mine were 13 months apart, I had no choice but to have them in full time nursery. I think I got around £105 a week or something and the actual cost of the nursery was £288 a week!

I think, the rules are different now, as the government has finally realised just how expensive nurseries actually are.

It would be worth looking into how much you would potentially be awarded based on your incomes, and that might give you a better idea of how much you would actually be paying.

This time around, I'm lucky enough that we can keep our heads above water if I dont go back to work at all, so I'm thinking of staying at home until Emily gets her free 3 year old place at nursery and maybe doing some part time work then.

 

[Blah11]

You can get help with childcare costs via working tax credit. We get half of Amelies nursery fees paid which I'm so glad of else it wouldn#t be worthwhile me working (it's just over £500 a month for 8am-2pm x 4 days a week).

 

[suzib76]

back when mine were in full time nursery it crippled us too and we got no help towards the cost from tax credits in fact when i look back now i still dont know why i held on to my job when they wre little, a job i have long since given up to become self employed anyway
i guess its just a matter of deciding whats best for you as a family, is there an option for one of you to work part time?
i have no plans to go back after this lo arrives, in fact i am really looking forward to being at home with her - since i have come off for mat leave i have lost so much stress in my life what with juggling round 2 kids the house and a dh that works mega irregular shifts, its unreal how relaxed i am feeling since stopping work lol

might do one day a week or something just to keep my hand in, as im sure i will eventually want to go back full time but for now not a hope lol

 

[Abz1982]

This is exactly why I am not going back. I am left with little over £100 a month from my salary after child care.

 

[BigPlans2010]

I've come up with a plan! I will return to work for the obligatory 3 months, which will be tough financially. Then, I will go back to my old waitressing job. I can then cover the bills and still be home most day times and split the care with OH, who will be home in the evenings. That way, we should work it that only one afternoon in nursery will be necessary.

It really isn't worth the time away for £100/200 a month and still not paying the bills!

 

[Abz1982]

It really isn't worth the time away for £100/200 a month and still not paying the bills!

Exactly! I couldnt handle a 40 hour week, 90+mins in the car daily, then having to do ALL the housework and see to my horse every few days. I could see me getting so crabby from lack of sleep that OH would be out the door in a few months as he just creates mess and work!

 

[BigPlans2010]

It really isn't worth the time away for £100/200 a month and still not paying the bills!

Exactly! I couldnt handle a 40 hour week, 90+mins in the car daily, then having to do ALL the housework and see to my horse every few days. I could see me getting so crabby from lack of sleep that OH would be out the door in a few months as he just creates mess and work!

Lol. Me neither! Not that we'd have the house for long if that was all I was bringing home. Needs must. Our way will mean I see OH less in the evenings but we'll have the weekends and a nice, clean home. We'll also still be paying the bills! We can also raise the baby ourselves.

 

[_Vicky_]

try with twins - lord knows what we would do if I didnt run my own business from home, I just dont get how anyone could possibly go back to work and have twins - you are looking about 1500 a month for two new borns full time - at least I think.

 

[wannabemamma]

I've just researched our local area, you are looking at £45 per day. (Plus the little bit extra I would have to pay to drop LO off before 8 as I am a teacher.

If I were to go back after a year, I would go back at the basic level on the teacher pay scale as I would be an NQT. The salary there is £21k, not bad really, but after tax, pension etc etc I would be left with around £50-£60 per wk after paying childare. NOT WORTH IT!! I would rather pay myself that to stay at home and raise our little one for a few years. And as a teacher I would end up paying for about 9wks per year that I wouldn't need to use, as the nurseries wouldn't let us take 13 wks off paying I doubt...

Take into account the fuel needed to get to work, food for lunches, work clothes etc etc and the figures look even worse.

Luckily the husband agrees, if the sitation changes nearer the time we'll reassess.

 

[Hoolie]

You can claim Childcare vouchers. This is a salary sacrifice and is deducted off your earnings at source. It represents a saving of 22% some of your child care costs as you are in effect not taxed on them.

both you and OH can claim up to £243/month. So if you use £486 of vouchers to pay your child care, the true costs to you is (486-107) £379.

You need to be careful when you are expecting another child. As the vouchers are a salary sacrifice, and your maternity is calculated on your salary, you need to cancel them for 8 weeks 22 weeks or so before you EDD. You also need to work out if the reduction in penison form your salary sacrifice makes the vouchers worth while.

I went back to work 4 days a week. I work 4 long days so in effect 35 hours which is just about full time. That saves me a day per weeks child care.

From 3 years old, you will be entitled to 12.5 hours (maybe 15hrs) free from the government grant. Just check when choosing the nursery that they do accept the grant.

It is expensive, that's for sure. And as we have another one on the way, We're going to struggle for a few months before our eldest goes to school. We'll be living on value baked beans LOL

Alex

 

[Hoolie]

And as a teacher I would end up paying for about 9wks per year that I wouldn't need to use, as the nurseries wouldn't let us take 13 wks off paying I doubt...

.

The nursery we use does. It has alot of teachers so they have payment breaks for the school holidays when requested. They also have a shorter day rate which the teachers use as they finish earlier than the 9-5.00 ers.

Alex

 

[LankyDoodle]

Well what I've done is sat down and worked out the sums and whether I'd actually want to be away from her when she is tiny. I've looked at returning to full time shift work (I currently do 3x24hr shifts a week approx), full time 9-5, part time (3 days a week 9-5), full time term time only (I am a trained teacher so can get into an education related role with ease, although I do not wish to teach) or evenings/weekends at a local supermarket until she is a bit older. While the last option seems to be the most attractive in terms of spending time with her and her not needing to go to nursery at all, it means I'm stepping off the ladder in terms of my career with children and young people (which is not as important as my daughter but I will still need it long after she has gone to school); it also means I probably wouldn't send her to nursery and I do want her to go at least 1 day a week for various reasons, mainly because I am fiercly pro-nursery.

So I am probably looking at the 3 days a week option or the full time term time only option. I don't see any point working 9-5 52 weeks a year as after I've paid for her fees, I will only be bringing 700ish a month into the household and won't be spending any time with her.

I guess it's all about weighing up your own circumstances, looking at why you work and what other things you could do instead. Good luck.

 

[Ganton]

As Hoolie has mentioned above, childcare vouchers are a great help, especially for those not entitled to working family tax credits.

Just a couple of extra points to add though.
(1) Receiving childcare vouchers is dependent on them being offered by your employer. Most large companies will offer them, and you could always try to persuade a smaller empoyer to offer them if they don't already do so.
(2) The saving is actually higher than 22% as neither tax nor national insurance is charged on the vouchers (ie. 31% - or higher if you are a higher rate tax payer).
(3) Finally, be aware of future cut-backs to childcare vouchers. It has been proposed that they be removed for 'middle-income families' as one way of reducing government borrowings. Since initially being anounced, the cut-backs have already been revised, but it's worth being aware that these vouchers may not be available forever.