working tax credit - childcare element reduced so mum can't afford to employ us as childminders.

[Sandym3g]

Myself and my DH have been working for a lovely family as nannies while waiting for our childminding registration to be completed. She was paying us weekly and was hoping to be able to continue with us when we came registered and then pay monthly with the childcare thing of the working tax credit thing.

Yesturday we phoned up Ofsted and found out that our registration is now active. They said all we had to do was wait for the certificates and we could start as Childminders. Should be coming today or tomorrow.

We had a phone call from mum last night saying they looked into the funds and realised that now that the childcare element has been reduced she can't afford to have childcare as she would now be worse off. We had really got on with the family and the baby had bonded with my DH. She was in tears. She really wanted to work and she had got her dream job and childcare she was really happy with but now can't do it. She has worked hard to get a degree and now can't use it. Very fustraiting for the family and for us but we totally understand why she had to cancel.

If she really wants to work and has got a dream job then she should be prepared to make a sacrifice of being a bit worse off while the children are small. Its not long befor they are in school and don't cost nearly as much.
How much worse off are they going to be, is she asking you to reduce your fees so its you that make the sacrifice! not her.
I know that sounds harsh but do they still go on holiday, drive, smoke, sometimes a sacrifice can be made somewhere. Perhaps she will have a rethink.I hope so as its a shame for you, I hope someone else comes along for you and your husband.

Nobody pays for my childcare. And there was a time when nearly every penny I made paid the childcare. But, because, I have stuck it out and continued to work hard, my income now pays for the childcare and then some. I have known people who have actually worked at a loss after paying childcare for the sake of long term gain.

All childcare should be tax deductible. Then she could afford to go to work. If she quits, she and the government are both worse off. When will they see this??

Has she looked into childcare vouchers? I was amazed the difference it made to our bil (we save £48 on what was a £164 bill!)

Strix - totally agree with you.

My career definitely doesn't promise huge salary increases even if I work my a* off but, while money is tight now, I know he's not going to be needing childcare forever... only a couple more years and then when he's in school, as I'm a teacher we will keep similar hours to dh and I and I won't need regular childcare. Maybe DH and I can then afford to pay a babysitter for just a night and have a date night out....

She has got back to us after talking to her boss and it looks like she might be able to work part time. They don't want to lose her. Yes they mentioned the vouchers and it looks like that is the way to go.

Using the childcare element method would of made them £500 worse off. The system is changing in April so maybe it will improve??

As far as I can see they don't have luxuarys. She is paying off her uni loan by all accounts.

In a way it works out good for us all. We get to help mum go out to work for 2 years not just the 1 year (contract was originally for 11 months). She gets to see her children more. Who know's what will happen in 2 years time.

She did say that she doesn't want to stop using us as she loves the way her son has bonded with DH. She hasn't seen anything like it before and she thinks that she wouldn't find it anywhere else. We joked that we would probably have lots of boys here lol.

Congratulations on getting through the Ofsted registration finally... with luck those certificates will arrive promptly.

I guess that something in her situation has changed to now mean she does not qualify for the childcare element of WTC. She may be entitled to other benefits, she may be able to get Childcare Vouchers... with luck she will look into things and perhaps contact you again in the future.

Now you can concentrate on filling your childminding places... as from Monday with luck you will be able to have your full quota of children.