SIL childcare fee's....

[celebmum]

hi all.. opinions please!

I'm due to return to work in Jan after 9 blissfull months of mat leave..
I'm lucky enough to be able to reduce my hrs too, and when i return i intend to leave my DS wil my SIL.
I live opposite the school that SIL DD1&2 go to, so the plan is that SIL will drop her 2 at school, collect my DS, have him for 4hrs and then meet me outside work/in the town.. Every Monday & Friday and alternate Tuesdays (approx 40hrs a month)
SIL will also have her DD3 (12weeks younger than my DS). She does not work, never has.
SIL originally wanted £60pw..I have offered her £120 a month as i think that this is reasonable and she has accepted.

AIBU for knocking the price down?

(my Mum, DH and I will share the childcare on the other days and also i will be buying my DS a carseat for her car and a double pushchair for her to use)

thanks
x

£120 divided by 40 hours = £3 per hour.

Is that the going rate, then?

She doesnt work but is taking money for babysitting. Is she going to inform the jobcentre of the extra income?

does she not need to be ofsted registered if money is changing hands?

Sounds like a bargain to me! If she's happy to do it for that price, then fair enough, but she may end up feeling that you're taking advantage a bit - I would!

Isn't it illegal to pay an unregistered childminder to look after your children unless they're doing it in your home?

My childminder charges 3.50 per hour which is average around here.

Yanbu IMO.

Will she be paying tax and declaring earnings?

"My childminder charges 3.50 per hour which is average around here."

Is that all? If that's the going rate, then YANBU for knocking it down.

Well i guess it kinda depends on if this is an undeclared cash in hand amount that she's using as a bit of extra pocket money?! Although TBH even then it sounds a bit low. If she's declaring it as an income then you should be paying her minimum wage at least and that's £5.93ph

SIl doesn't work, but is supported by her DH and doesn't claim benefits except CB. the money i'm offering is mainly to cover expenses whilst she has DS to be honest, fuel/food/playgroups etc.

i thought close family members did not have to be registered?

Presumably she'd have to register as a childminder and be self-employed for it all to be above board. But I'm guessing this is going to be undeclared pocket money.

also going rate for 'proper' childminder near me is approx £3-£4..

close family can look after without being registered CM however you need to look at the going rate for CM in your area - if the local going rate is £6 then £3 is too low - it's hard wo rk looking after 2 LO's

ENormaSnob - That's cheap child care round where I am is charged at £18 per session and sessions are 3 hour slots and then each hour before or after is charged at £6.50ph. The childminders are even dearer my friend pays £7.50ph for her childminder

She does not have to register to look after her nephew (ex childminder here).

I think it's reasonable to offer what you feel you can afford/covers your childs expenses and if your sil is happy to agree where's the problem?

My sil looks after my youngest 1 day a week and collect the eldest from school on that day and feeds them both, I give her £20 a week for that, she's happy, I'm happy, children are happy.

I learned the hard way that you should never think you can save money on childcare by employing a relative

BTW going rate here is £4 an hour

in my opinion, if she wants a decent wage for it then she needs to do it properly and register as a childminder. Otherwise your "pay" can just be a token gesture to thank her for looking after your DS and to cover her costs.

However, if you don't want to give her a decent wage then you will also have to take into account that she is under no obligation to be reliable...

If I were you then I might up the amount slightly so that there is more incentive to maintain this arrangement long term - otherwise you may end up making the relationship with your SIL tricky and having to find yourself a childminder that costs considerably more. Also if she registers then you may be able to pay her through tax credits.

bit longwinded but I hope that helps

At £120 a month, she doesnt have to declare it as it's under the tax threshold.
Agree with bluejeans though. Family providing childcare often seems like a good idea, but can be the cause of terrible arguments. Please make sure you have completely thought this through :)

Oh, and child minding round here is about £3.50 - £4.00 for a registered childminder, so I would think £3 is about right.

I would be happy to do that but then I mind my familys children during all school holidays for free. I must have mug tattooed on my forehead

I think it is a bit cheap tbh. If you were paying a childminder I think you would be paying more than this and I think you are fortunate that your child will be looked after by family, therefore it is important that your SIL doesn't feel that she is being taken advantage of in any way.

I don't think she would have to pay tax as her annual income is going to be less than the taxable level.

Also, the car seat and double buggy are for your childs safety and convenience, rather than hers, so this is a cost you should cover. It isn't a favour to her that you are buying these things.

I'd pay her a bit more if you are not covering expenses seperately.

thanks for all the feedback..

SIL and I do have a good relationship, if either of us weren't happy we would be able to say so without bad feelingsa and fwiw i often look after her DDs (my neices) and collect them from school etc if she is unable..

if you're going to reciprocate in some way at times, the going rate is up to £4 in your area then it sounds okay.

If you are going to pay more you may as well pay a registered local cm. At least there won't be the favour thrown in your face or any family rifts if it goes tits up.

I am north west btw and 3.50 is definately average rates for an ofsted registered cm.

Depends on what the going rate is for childminders where you are. Hard to comment as rates vary widely depending on where you are... £3 an hour to me sounds cheap...personally I wouldn't have tried to knock down price as would want her to be really happy to do it etc.

I would expect to pay less for family to act as an unqualified childminder, as they won't be ofsted inspected or registered, and presumably won't pay insurance.

I think it's great that your DS can be with his aunt and his cousin whilst you work.

I think, regardless of how good your relationship, perhaps because of how good it is, that you should offer her a little more. Doesn't have to be going rate if it's notionally for "expenses" but more than £30 per week. Because you don't want to exploit her!