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What would you expect to be cheaper....(31 Posts)
I asked this on a thread but thought it may be more appropriate to start my own.
I was chatting to a friend last night who was asking me about my childcare and she asked what different things cost. She's thinking of going back to work after 15 years of being a sahm
I realised I didn't have a clue, I haven't used a nursery for 18 years a nanny for 13 years so my only recent experience is of two childminders.
So in order of least - most expensive what would order you expect it to be (outside of London) between childminder,nanny and nursery.
If your not bothered by sharing the actual cost I'm also quite interested in how often sibling discounts show up she has 3.and if ofstead rating makes a difference.
I pay mine £6 ph for each child no sibling discount. But I am about to stsrt with a different one as I've recently found out that the going rate in my area is only £3.70 ph each child and I'm not comfortable with my cm's rusk assessment did think I was being silly until I read her recent ofstead report and they highlighted the same things as an issue.
I guessed that in cost order it would be childminder then nanny then nursery (nursery being the most expensive) but I have no idea if I'm correct.
younger/less exp nanny for say £10/11gross... surely you mean less than that. As an older, more experienced nanny that's my sort of salary
She would have no travel costs to factor in either - so does that mean work is very near home? Depending how the working hours occur, childcare could be needed for quite a lot more than the working hours.
If say travel to/from work was around 15 mins, working hours were 9am-1pm, then childcare would be needed say 8:30am-1:30pm to allow for a little bit of time for delays and getting ready to be on the shop floor (in retail jobs they may not pay from arrival time on site but at start of actual work - I have had that happen in leisure industry/theme park, been too long since I did retail to remember exact pay arrangements).
So 20 hours work, 9am-1pm (4 hours) over 5 days would need childcare of 8.30-1.30 for 5 days, so 25 hours. This is theoretical, the working hours are not known at this stage, or how long a gap will be needed between dropping off children/leaving home and starting work. This however does need to be thought about as it increases the cost of childcare.
Then you need to consider taxation.
If she was on £6.50 an hour say, then 20 hours per week that is £130
At that level she has no income tax or national insurance deductions.
Nanny with salary of £10 gross an hour working 25 hours per week, would get gross salary of £250 and there would be Employers NI of £14 per week, so cost to employer of £264 per week.
Payroll needs to be done, could be done by herself but outsourcing it will cost around £150 a year (price varies), so lets say £3 a week in admin cost to try to keep to whole numbers.
So total at this stage is £267. This amount is the figure that could be told to tax credits, as I believe they allow you to include Employers NI and payroll admin.
70% = £186.90 leaving £80.10
There there are other costs of having a nanny such as outings/activities. Toddler groups can be low cost, though some in my area are charging £2 or more. How will nanny get to activities, will that involve cost? If you gave it a budget of £10 a week would it be enough?
So yes, may end up with around £40 a week. However meanwhile nanny has been using heating and electric at the home which may not have been used as much if the children were not there.
It is going to be tight and any changes to tax credits may affect things.
She may be entitled to other benefits, so checking to see what she may qualify for once working could be useful. Turn2Us: Benefits Calculator
A similar calculation would need to be done for a childminder.
In my area childminders charge around £5 per child. Based on 25 hours, that gives £375 per week. That is £75 over the threshold amount for childcare element of working tax credits. So max claim amount would be £210 (70% of £300) leaving £165 per week to pay.
Their income if at £6.50 per hour, 20 hours is £130, so it can't be done.
So establishing likely costs of a childminder is necessary. Family Information Service in your friends area may be able to give details of average costs. They will be able to provide a list of childminders, whom your friend or yourself could contact to find out cost and availability - would they take 3 children under 5 for a few hours per day?
Location can make a difference with childminder costs, it can vary quite a bit. So establish typical cost, so you can either include it as a possible option if you were to find a childminder who would take 3 children under 5 (some may, especially if they are working with another childminder), or rule it out due to cost being too high.
Your brother owns a shop? In that case, giving her 2 full days per week would be better I feel, than say 4 hours per day Mon-Fri.
What salary would your brother pay... £6.50? All year round, so annual salary of say £6800?
>At a CM or nursery, she might be able to get 15 hrs free for any children over 3 and may be able to get free hours for children over 2, because of her circumstances.
Good point, though may be term time only, or split over year at less hours per week. I'm in Surrey where FEET - the funding for 2 year olds is 15 hours over 38 weeks, or 570 hours split over year.
The big picture needs to be looked at as well... her own self esteem from working, rather than claiming all benefits. Whilst working she may still get some benefits as her income will be low but it's a step on the ladder and once her children are older then she can increase hours. She has been a sahm for 15 years, she wants a change and it really should be better to work than to claim benefits.
I feel it is great that you and your brother are helping her Sockreturningpixie so I hope that you can come up with a solution that works.
She won't qualify for the 2 year funding because she will be getting wtc.
And thank you for that huge amount of info its really very helpful
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