45k salary entirely eaten by childcare

[Sofiewoo]

Granted salaries aren’t what they were only a handful of years ago but aibu to be shocked that my 45k salary is now entirely eaten by childcare and getting to work??
I figured if you are earning in the 20s you would assume that but not mid 40s!

I’m trying to weigh up whether to just take the next year and a half off instead of working for nothing. I know, pension, career blah blah but it’s mentally very difficult to juggle drop offs, work schedules and sickness but be no better off financially at the end of the month.

Did anyone else not realise it was a bad as this?

'Student loan, tax, pension, commute is all relevant to the cost of work which is my whole point.'

Why not include the cost of your car and house while you are at it.

If you stop work while they are nursery your student loan will still be outstanding so it has no relevance to childcare costs. You will actually be in a worse off position when you return to work

Sad to see you are not better off financially. It is bonkers, I was earning 50k the other year, killing myself and still couldn't get a mortgage, big tax bills, student loan repayments is another killer. Single parent. I thought what was the point. Reduced my hours and claimed universal credit, better off making less and I actually pay more into a pension now, more free time, less stress, there for the children and if I earn loads I put it in a pension as universal credit class it as a expense. What's even more crazy, I get offered 100% free childcare now. Crazy. It's like the government don't want me to work,if I stopped completely I would get loads more in benefits. If I was you, leave, set up self employed so you can pay national insurance and keep you in the working world. Best thing I ever did. Set up a profile on LinkedIn as well to keep in the professional world.

It’s an incredibly odd outlook for you to take such issue with net salary being spoken about in terms of student loans deductions.

Student loan repayments are directly linked to income. If I have no income I don’t pay them.
It’s not remotely the same as a car or mortgage.

@Fairyladyonwheels she doesn't even need to pay NI.
As long as she claims CB or at least registered for CB even if they don't claim it. With a child under 5 they will get the NI credits.

They just need to check with BA they are set up properly and she'll get it

OP could you answer what your nursery’s hourly fee is?

(presumably food is incl if there’s no consumables added separately?)

UK needs subsided daycare

Why people (women) aren't up in arms about it I don't know

It’s around £8.50.

There's something I didn't really appreciate until my daughter started school and I saw more grandparents around. An significant number of families have regular grandparent childcare. That's how they afford their careers and children. Eg one day each for 2 sets of grandparents then both parents work full time paying 3 days at a nursery. And variations on this.

£8.50 with meals and consumables included.

How much would you think is a fair rate to look after a baby with everything thrown in? £5 per hour? £4?

Whilst I totally get it’s a big chunk at the end of the month, to call that extortionate isn’t true.

No I provide all consumables except food.

I don’t think you can really compare the hourly rate to that of a babysitter or nanny, I’m paying £8.50 per hour for my 3 year old to be looked after at a ratio of 1:8.

I didn’t call it extortionate but I don’t think this is the gotcha you think it is. It’s a bit of a disingenuous argument.

Absolutely.
This is also what enables so many children to have hobby classes that start at 4 or 5 o'clock.
So many things start early. I'm sure when I was a kid nothing started before 7.00. Or maybe I just didn't go to things that started early.

@Sofiewoo

How do you expect nurseries to stay open?

They’ve accepted to fund your DC with very low payment from the council and you pay £8.50 for the rest of the private hours.

I mean it’d be great if they could charge you all £5 on top but then there’d be no nurseries open.

Where I am, it’s extremely rare to see family members such as grandparents looking after DC.

We kind of have it with the funded hours.

I honestly think most people have no idea how much nursery costs. Our fees just went up and it’s now £21.5k per year for my child to have a full time place. It’s a decent nursery in the Home Counties, nothing too special. It’s not like the private vs state school debate - there’s no free / low cost option. The government contribution is £5.88 per hour for 3 and 4 year olds so parents have to subsidise hours that are “free”. I’m the only one of my friends who still works full time.

It clearly isn’t working though.

Not any more @Mummybud . That’s extended to children of nine months upwards now.

It does vary a lot area to area. I moved here in my 20s and lots of colleges who are grandparents regularly look after their grandchildren and reduce their hours to do so. It's nice, they are mostly very happy and enthusiastic to play an important role in their grandparents life. One of them was worn out my it and found her children entitled about it. We don't have that unfortunately.

Well, isn’t it? I don’t mean that snarkily, I’m genuinely wondering. Because I don’t think childcare costs are what’s driving the low birth rate to be honest.

@Justformenow

these ‘free hours’ are a farce and a headache for parents and nurseries alike. They trick parents into thinking it’ll really help but they don’t actually because nurseries will have to come up with the deficit of their fees somehow. They make nurseries take the brunt which is very unfair.

I disagree with this, she has the rest of her life to work on career and pension whereas her kids are only little for a few years. It goes quick.

9 month olds receive 15 hours term time.

No doubt fees will increase in the summer when the 30 hours extends to 9 month olds.

The only people who win from the funded hours are those who can use the limited term time hours only. Actually those of us paying full time are simply subsidising those places even further.

You think the equivalent of a 45k salary for 2 children with funded hours is the system working?
The average salary is £37k, how can childcare be remotely affordable?
Plus as I said already I pay more now than I did prior to the recent expansion of the funded hours so as far as “subsidised childcare” goes it’s not really subsidising anything.

I never really get the focus on the early years either - children need quality parental input at all ages and later on with school work, the emotional dramas with friends - you can’t hire someone for that.

You are blithely ignoring that you specifically chose this expensive nursery and that the choice has never been a binary full-time versus no work. For the 3yo, choose school nursery (free) with childminder and it'll be far cheaper. Choose part-time and both of you use flexi so that you keep your career plus time with the baby and save a few days of nursery fees. Or just keep moaning, up to you really.