DH and I going part time to deliberately reduce wages

[Bucketheadbucketbum]

Just working out the free childcare hours and actually DH and I will be muxh better off if we both dropped to 3- 4 day week to deliberately reduce our incomes. Would obviously be nice way to live too! Anyone else doing same? Seems mental but we've looked at it 100 times over and it's true!

Well while I don't agree with government policy if in fact this is true, I don't blame you one bit.

You mean for more free hours now or when the recently announced changes come in in over a year?

Do what you like but bear in mind that currently ‘free’ hours are regularly topped up with other fees by a lot of settings and that if they follow the same formula they’ll only cover term time.

Can you just go part time in your jobs?

Seems crazy that you can do this but if it works 🤷🏼‍♀️

Never a fan of incentives not to work. But if its available..

Will you be allowed to reduce your days?

I can't help but laugh as this is the opposite to what the government wanted.

Well of course it works, I assume what you’re saying is you will deliberately reduce your income so you can get free child care?

its no different to any other deliberately not working so you can get benefits

The better option is to put the excess income in a pension through salary sacrifice if your company allows. Then it won’t count towards your income to get the free hours.

Not unreasonable but think long term too.

What impact would this have on future earnings/progression/future goals outside of raising your family/pension - particularly if you are in a DB scheme.

Weigh up everything and do what is right for you!

Sounds like you don’t care that other tax payers will be working to pay for your child when you could actually afford to pay for it yourself.

Each to their own I suppose.

Surprised at the responses. I wonder if it’s because it’s child care. If someone posted me and my husband are going to go part time so we can claim universal credit id suspect the responses would be different

Can you do it in your jobs? Do you need to go that far or could you increase pension contributions to bring down salary instead?

Don’t blame you, if the sums work out. It’s worth thinking about the longer term impact on your career though. I do 4 days and that’s the bare minimum you can do in my role. 3 days or fewer I’d be looking at much lower level work. Even so, it’s had an impact on my career and i’m seen as less serious/less of a promotion prospect than when I was full time. It’s been worth it for me but it’s still worth thinking carefully about. I would also probably have to look for another job when I want to go back full time again.

Many, many, many people already do that though. I don’t really blame them either, it’s the system that’s at fault not the individual. They’d also be well advised to think about future prospects too.

Well I don’t know all of the ins and outs of the new schemes but the current 30 hours scheme has an income limit of £100k for any one parent so unless one/both of you earn over £100k I can’t see how it would make a massive difference.

YABU.

Unless you're both paying 60k into your pensions by salary sacrifice, that would be the first thing to consider before going part time.

A bit short sighted, childcare is not forever. Also I doubt the numbers add up tbh.

I quit my job because of childcare. OH is a high earner and we’re couldn’t get the free 30hours, I’m a nurse and my wages were not high enough to cover childcare with any significant value so to ease stress at home I just quit. I now work agency at the same place less hours more money and can chooses when I work around my OHs hours. Not want the government wants either but I’m not working just to pay childcare and it’s not really much cheaper now the kids are at school as we have 3 DDs and wraparound care is still expensive.

Is that true? I’m long past childcare needs but I’d have thought it was based on gross salary not net?

if it is net then, yep, absolutely 5hey should do this along with loads of other people- quite a loophole for Gov to have made

Not the same at all. Income of £100,000+ pays tax to the tune of £25-30k.
30hrs for one child annually costs taxpayers under 5k per child.

So high earners just get a bit of a tax break and still contribute a lot.

Not necessarily, my DH and I have jobs where it is easy to reduce then increase hours, and you just get paid less, the OP may well have similar.

You are thinking of short term gain not longer term. Going part time means that your national insurance contributions drop so you will have to work more years to gain a full state pension. Your company pension contributions from both yourselves and your employers will also fall. You may not be eligible for the same sick pay and employee benefits. Long term your earning potential and career prospects will take a massive hit. You will gain for a very short time and will massively lose out longer term
Also are you really comfortable not working so other taxpayers can pay for your children? I think that’s a grabby greedy horrible way to leave but each to their own.

Having two parents working FT with young children is a hell of a strain anyway.

I know loads of people have to do it. Doesn't mean it should have to be that way.

YANBU.

It takes the piss

They certainly would! It’s ridiculous and persI think you would be unreasonable.

Is that true? I’m long past childcare needs but I’d have thought it was based on gross salary not net?

It's based on gross taxable income. Pension contributions aren't taxable.

OP do whatever works for you. But bear in mind the knock on effect on both your future careers and earnings potential by doing a few part time years now. In many sectors you'd both be overlooked for promotion etc so may lose out quite considerably long term.