Blog-prompt: Childcare costs - are you "pay neutral"?

[KateMumsnet]

This week's blog-prompt is inspired by the news that, for an increasing number of families, the pay of one parent (usually the mother) is being almost wiped out by soaring childcare costs, shrinking tax credits, and stagnant salaries.

The Resolution Foundation, who are conducting a major study into childcare costs, have found that, if a couple with two children under school-age earn £40,000 gross between them, they'll only add £3000 to their net income if the mother goes from not working to full-time work - and that's before travel and other work-related costs. Set this against a background of rising female unemployment and the fact that many women feel they'll jeopardize their future earnings if they drop out of work - and it seems a growing number of us feel pressured to work for nothing.

So this week we're calling for blogs on this worrying development. Are you "pay-neutral", or near-enough? Are you happy to work for nothing - or have you decided to opt out of employment, reasoning that it's just not worth it? Let us know here on the thread if you post - or if you're pressed for time, tell us what you think here.

Happy blogging!

[lexluther]

I was pay neutral (more pay negative really) - thanks for the prompt, I've been thinking about writing about this for a while: I enjoyed my job, it's a pity it cost me more than I earnt

[KateMumsnet]

Great post lexluther. It does seem insane that so many competent women are being lost to the workforce (and the economy) because of the expense of childcare. Presumably, not many of us would want the salaries of childcare staff to be cut - any ideas for other ways to reduce the cost of childcare while we work?

[lexluther]

TBH it would have to be significantly subsidised by the government (not that they want to ). In the long term it surely makes more economic sense for me (and others) to stay in the workforce paying tax and NI than leaving to look after children and struggling to get back into work once the kids are old enough to not need much (if any) childcare. The childcare staff are underpaid as it is - I don't think there's any slack there.

[KateMumsnet]

Nope .
Tangentially, This was an interesting piece from a policy person from The Children's Society, on the impact of changes to childcare-related support for low-paid families, once Universal Credit is introduced (full report here).

[Tee2072]

I just noticed this thread, must be blind!

In any case, I am seriously considering shutting down my company (I'm a sole trader) and cancelling my child minder for the school year as I can't seem to find any more clients right now and I think my largest client is about to drop me down to nearly nothing due to employing someone full time in house to do what I do (web and graphic design).

Now that he's starting preschool 5 days a week, 3 hours a day, I may be able to do a bit of work without any childcare, but it won't be easy. I do think a lot "Oh look, I'm making X this week, that will just cover son's childcare!"

BTW we get no CTC or anything other than CB due to my husband's salary. But that doesn't mean we aren't strapped for cash these days!