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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

The £100k childcare cliff edge - how is anyone meant to make this work?

262 replies

Saladleaf · 21/10/2025 22:06

I completely understand that on paper, a six-figure household income sounds like a lot. I’m not trying to be ignorant of the fact that many people are struggling far more. But for anyone actually living it, especially in the South East, the reality feels very different once you factor in childcare costs.

We’re looking at full-time nursery fees of around £2,500 a month per child, and I honestly don’t know how families are supposed to make it work once you hit the £100k cliff edge and lose access to the 30 free hours. It’s completely unsustainable.

I know some people say you can get around it by putting more into your pension so your income technically falls below the threshold, but that just isn’t realistic for everyone. With the cost of living, mortgage, and general expenses, we simply can’t afford to take home hundreds less each month. We already don’t have holidays, don’t buy new clothes, and don’t even have a car. There isn’t any more to cut back.

It’s not even about wanting handouts, it’s that full-priced childcare in this country is so eye-wateringly expensive that it makes working impossible for many women. The system actually discourages the lower earner, usually the mother, from staying in work.

A friend of mine is a good example. Her husband earns over the threshold, and she’s just spent years retraining into a new career that she’s passionate about, but is now entry level. We worked out that if they have a baby, it would literally cost them money they can't afford for her to keep working once childcare, rising mortgage payments and bills are factored in. She’d have to give it all up. It’s so demoralising.

And the whole system makes no sense. Two people earning £99k each can claim free hours, but one person earning £100k can’t. Someone on £50k with one child gets support, but a couple on £100k with two children get nothing, even though their childcare costs are double and they are taxed more. It’s not unreasonable to have worked hard, built a decent career and want two children, but the government seems to penalise you for it.

Other countries manage to offer affordable childcare to everyone because they see it as essential. Here it just feels like you’re being punished for trying to do well. For those of us in the South East, it’s even harder. Living costs are sky high, childcare is extortionate, and it’s not realistic to just move somewhere cheaper when your jobs and lives are here.

It feels like you’re being backed into a corner. I find it so demoralising that the system seems designed to push mothers out of their careers, especially when you’ve worked so hard to build one in the first place. AIBU in feeling like this?

OP posts:
yetanotheridiot · 21/10/2025 22:52

Get a grip, you're earning more than an enormous % of the population so you reign in your lifestyle like so many others do during the early years ifs.org.uk/tools_and_resources/where_do_you_fit_in

Yes childcare IS expensive but the NMW is £12.21 and hour so thats your £25k spend on a 35 hrs week for one person, let alone the building, support, management, supplies cost of a nursery.

cestlavielife · 21/10/2025 22:52

ttcat37 · 21/10/2025 22:44

Old days? How long ago are you talking? Do you mean during a time when it was easy for a family to survive on one wage, so if both parents chose to go to work, childcare was actually affordable…?

20 years ago
Childcare costs were huge. But as now they are for limited time.

Kitte321 · 21/10/2025 22:53

Ablondiebutagoody · 21/10/2025 22:34

The issue seems to be people on around £100k whinging that other taxpayers, 95 odd percent of whom earn nothing like that, should subsidise their childcare costs. And that really, it would be in their best interests to do so. Totally ridiculous.

Are you joking? How is anyone earning over 100k having their childcare subsidised? They are paying HUGE amounts of tax already. If they have nursery aged children they will likely be contributing at this level for the next 20 years.

Irritatedandsad · 21/10/2025 22:53

I just checked our local nurssry fees as mine have been out of nursery for about 6 years.
Wow they have gone up so much. £88 a day.
I think we were paying 60 a day. But we didnt have free funded hours at that time so over the duration with 2 kids I think I spent over 100k. It was insane then and it is crazy now.

BluntPlumHam · 21/10/2025 22:54

Ineffable23 · 21/10/2025 22:38

I agree that it's bonkers. I think if we want people to accept paying high taxes, we have to offer as many universal benefits as possible. You don't become ineligible for NHS care or school places above a certain income, and I think a lot of high earned would feel more like they got a fair deal if what they got back from the state didn't decrease as their tax take increased.

This it’s not worth it. It’s not worth earning more or working hard because you’re essentially taxed to the max with very little benefits in receipt.

Bearfan · 21/10/2025 22:55

MidnightPatrol · 21/10/2025 22:49

The most confusing part is that the Tories were really the architects of this - 14 years and they didn’t move the 62% tax rate, and they introduced the £100k cap for free hours in 2017, and extended the free hours provision (and it’s the 30 free hours from 9 months which has made it really stupid).

Did no one do the calculations? What did they think would happen?

Edited

It takes a while for the behaviour to develop where everyone starts avoiding the tax. In year 1 the policy would have earned the government money. In the long term the policy costs them a lot of money.

Look at wealth taxes. If a wealth tax was introduced in November it would earn money. But then the wealthy would flee overseas and no overseas workers would come to the UK and in the long term it would cost us a fortune Because even if we say it’s a one off wealth tax, no one believes it.

MidnightPatrol · 21/10/2025 22:55

yetanotheridiot · 21/10/2025 22:52

Get a grip, you're earning more than an enormous % of the population so you reign in your lifestyle like so many others do during the early years ifs.org.uk/tools_and_resources/where_do_you_fit_in

Yes childcare IS expensive but the NMW is £12.21 and hour so thats your £25k spend on a 35 hrs week for one person, let alone the building, support, management, supplies cost of a nursery.

Do you understand how incentives work, and what the impact of this policy is?

Think beyond ‘that’s a big number’.

HiCandles · 21/10/2025 22:56

Fascinating thread. I am likely to breach £100k within next couple of years and have been looking into ways to keep income below, likely a SIPP. Never thought of the knock on effect of the money now being out of reach of the taxman. What a ridiculous system.

BluntPlumHam · 21/10/2025 22:56

Ablondiebutagoody · 21/10/2025 22:34

The issue seems to be people on around £100k whinging that other taxpayers, 95 odd percent of whom earn nothing like that, should subsidise their childcare costs. And that really, it would be in their best interests to do so. Totally ridiculous.

If she’s earning 100k she’s paying sufficient tax to subsidise a heck of a lot more than you think. ‘Others’ won’t be subsidising anything for her.

Bearfan · 21/10/2025 22:57

yetanotheridiot · 21/10/2025 22:52

Get a grip, you're earning more than an enormous % of the population so you reign in your lifestyle like so many others do during the early years ifs.org.uk/tools_and_resources/where_do_you_fit_in

Yes childcare IS expensive but the NMW is £12.21 and hour so thats your £25k spend on a 35 hrs week for one person, let alone the building, support, management, supplies cost of a nursery.

I don’t think you understand the situation at all do you?

SwallowsandAmazonians · 21/10/2025 22:57

The costs seem very high. I just looked up the nursery mine went to and it's still under £1,500 full time for a baby. That's in inner London so not an inexpensive area.

I imagine you've looked for cheaper options though and they don't exist near you. Obviously if you could find somewhere less expensive it would make a big difference.

I had the same issue and was actually quite stupid and for about a year earned about £5k over the threshold and didn't get the hours, I didn't realise there were means to reduce my salary or that the money between £100k and £120k is effectively taxed so much that I was losing a massive amount of free childcare for almost no gain in income! But at least the fees were more reasonable.

Gimmethemoney · 21/10/2025 22:59

We did extensive family and financial planning to manage these costs, one of us being a SAHP was not even on the table. I mean 2/3 years of forward planning and forecasting.

our nursery bill is as much as our mortgage, it is so expensive but the end is in sight.

StationHouse89 · 21/10/2025 22:59

@SalmonOnFinnCrisp here here. And I have dropped a day and backed right off my career. Which is sad.

MidnightPatrol · 21/10/2025 23:00

Bearfan · 21/10/2025 22:55

It takes a while for the behaviour to develop where everyone starts avoiding the tax. In year 1 the policy would have earned the government money. In the long term the policy costs them a lot of money.

Look at wealth taxes. If a wealth tax was introduced in November it would earn money. But then the wealthy would flee overseas and no overseas workers would come to the UK and in the long term it would cost us a fortune Because even if we say it’s a one off wealth tax, no one believes it.

I am very interested to see what happens over the next 12-24 months. The new 30 hours has really changed the incentives quite dramatically.

With a 4 year old and a 1 year old in 2023 I would be excluded from 15 hours for the oldest, and tax free childcare x 2. I think this would be worth ~£9k.

With a 4 year old and 1 year old in 2025 I am excluded from 15 free hours for the oldest, plus the tax free childcare x 2… plus 30 free hours for the baby. This is worth more like ~ £22k.

To earn that difference, most of the income is taxed at 62% - so you need to earn a lot to recoup the effective loss vs trying to get below the threshold.

It’s huge. How did no one realise.

arcticpandas · 21/10/2025 23:00

I agree that childcare should be universal like in Scandinavia where they pay around 200£ per month for nursery. But since the parents have 18 months of maternity/paternity leave most children will not be left before that. What I find weird is people wanting to have children but then not spending time with them. Preferring to go to work and leave your child with strangers even though their pay is as high as the nursery costs. Noone is forced to have a child. Personally I wanted to spend as much time as possible with my children.

Bearfan · 21/10/2025 23:01

StationHouse89 · 21/10/2025 22:59

@SalmonOnFinnCrisp here here. And I have dropped a day and backed right off my career. Which is sad.

There are some truly vital jobs that are paid a pittance. Post doc researcher doesn’t earn much more than the minimum wage. Intelligent, able people trying to find a cure for cancer having to give up work because their other half earns over £100k.

Tilly0921 · 21/10/2025 23:02

My husband earns slightly over 100K, I have a step child who my husband pays a lot of money to their mum and rightfully so. We have 2 children 20 months apart and we too, have unfortunately been hit with not receiving 30 hours funded childcare. This meant I had to make the decision not to continue/take a break from my career, as putting 2 children into paid childcare priced me out of working.
I do work part time for the 15 hours we receive, but have no career prospects, it is just a job.
I personally think it's hugely unfair for these rules being based on one earner, it penalises not only the other parent but also the children who are missing out on additional preschool education.

GeorgeBeckett · 21/10/2025 23:04

I’m actively turning down work to stay under and not taking on extra responsibilities. Which I know is a very privileged problem to have. I’d generate more tax by doing the work though. And there are a lot of us doing this within the NHS. Probably would be quite good for the country if we did some of that extra work needing done. I love my job but I’m not going to literally pay to do it.

Redruby2020 · 21/10/2025 23:04

They want to put people off having kids, put it that way. And imagine this situation for singles, even with a normal salary, despite some help, if you are entitled.
Then the holidays, someone commented on a TikTok video as there are always things on there about these subjects. That the school holidays have always been the same.
They have, but logistics have changed.
And if you can’t find suitable cover then you are f**d.

mswales · 21/10/2025 23:05

Childminders and nurseries that are part of schools are far cheaper than the private nurseries in the southeast. Yes the school ones close in the holidays but there are clubs the kids can go to in the holidays which are also cheaper than private nurseries (admittedly this only works for 2 year olds and up)

TY78910 · 21/10/2025 23:09

We should take this post and some of the calculations in this thread in to a petition. I’d sign 10 times if I could.

IHaveAlwaysLivedintheCastle · 21/10/2025 23:09

I'm struggling to have much sympathy. There was absolutely no assistance with child care costs when my son needed it. We made the decision to employ a nanny. That was paid out of taxed income and on top of her wage we paid National Insurance.

Allswellthatendswelll · 21/10/2025 23:11

Hotchocolateandsnow · 21/10/2025 22:36

I agree that childcare needs to be better funded and reviewed. There should be a sliding scale but I have a feeling that the government still might set this at 100k for the top end.

Most people now days have to plan an age gap to avoid having two in nursery full time. It’s becoming very common to have a 4 year age gap or larger. I hardly know anyone any 2 year age gap and if they did they are very fortunate to have family help with childcare or money to fund it.

I think it's the fact it's based on a solo income and not a household income which makes it so unfair.

Not everyone can have a larger gap. People are having kids later (again partly due to house prices and COL) so if you have no1 at 35 then you can't always wait until 39 for no 2. Having 3 kids is now a luxury!

Allswellthatendswelll · 21/10/2025 23:13

IHaveAlwaysLivedintheCastle · 21/10/2025 23:09

I'm struggling to have much sympathy. There was absolutely no assistance with child care costs when my son needed it. We made the decision to employ a nanny. That was paid out of taxed income and on top of her wage we paid National Insurance.

How much was your mortgage then? How much was inflation? If it was 10+ years ago it's a totally different landscape.

Nannies aren't covered by free hours anyway.

Melaniais · 21/10/2025 23:14

Been there and was the reason we have 2 kids 5 yrs apart so that we don’t have 2 at the same time at nursery as it wouldn’t be affordable to us

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