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Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

Minimum £72k salary required to allow me to take home same as my 19 year old nanny

266 replies

knakered · 10/02/2007 10:02

Nanny nick has done the "big sums"...so we need to earn £72k to to take home the same as my nanny - lets not get into disposable income...4 kids/mortgage etc...vs living at homewith parents ..ho ..hum..

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eleusis · 16/02/2007 09:07

"(4) the abortion after DH gets drunk one night - £4k"

Excuse me?!

Your equation is missing out on the part about the parent wanting to have the same take-home pay. You have only worked out what it costs to pay the nanny and have 0 left.

Cloudhopper · 16/02/2007 09:31

Habsgirl - the example was how much you would have to earn to have the same disposable income as your nanny, rather than just to cover her costs. As far as I recall it wasn't a rant that nannies earn too much, it was just an eye opener about the reality of women returning to work and the financial benefits they receive for that.

Anyway, you have demonstrated that to afford a nanny, you need well above the average income for a woman in any region, even expensive areas. And that is just to break even and make a net income of nil. Not a penny of that 37k do you receive in compensation for working.

I assume that anyone below that income threshold would therefore be precluded from having a nanny. I don't suppose having a nanny has ever been that viable except for fairly high earners. However, if you have upwards of 2 children, it is possibly your most cost effective option once you take into account after school clubs, school holidays, private nursery places, childminders and all the other wrap around care needed to hold down a successful job.

If I ever earned that sort of money, and did the sort of job in my sector that would be needed to earn that much, I would expect to get a better net financial reward for all the stress and responsibility. So I will end my career progression right here for now. And that is why women probably don't get the better jobs in this society. It's just not worth it unless you are incredibly driven for success for its own sake.

buffys mum - i agree with your point about number of children. And yet for many people, the days of 150k houses are long gone and in the dim and distant past. Here you are looking at 300k minimum. For those who say move to a cheaper area, it isn't possible. Further into London is much more expensive, but further out gets you into commuter land and again is more expensive. We are in a pocket of 'cheapness' in the SE.

balancingact · 16/02/2007 09:38

Oh Eleusis, thank god for that!
I thought i was the only one sitting here with a expression on my face!
I'm sorry Habsgirl, but if you meant it in jest, i didn't really see the funny side to it. Our nanny is a very wonderful person, who cares for our children and is vital in helping us achieve the work:life balance that all parents are striving for. Very far from the husband stealing, thieving, slob that you jokingly (hopefully) imply.

FioFio · 16/02/2007 09:39

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FioFio · 16/02/2007 09:42

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Judy1234 · 16/02/2007 09:50

There used to be child tax allowances per children and a tax allowance the husband (or wife) could transfer to the other if the other didn't work.

It's not a double tax it's a treble tax. You earn X. It is taxed at 41% (or most of it if you're a higher earner) including NI which is uncapped as to 1% now. Out of the taxed income, the - the 59% left you pay the nanny's net pay. You also pay her tax and NI. You then also pay the employer's NI too.

You of course is not you alone. You pay half of all that and the child's father pays the other half. Any mother who thinks childcare costs are something she 100% bears need to go on the Xenia Feminism School.

ssd · 16/02/2007 09:53

like it Xenia!

I could do with going to your school sometimes!

eleusis · 16/02/2007 10:01

Xenia, can I work at the school? Oh, and how old does DD have to be to attend?

Is this going to be a girls only school based on your island?

Bensonbluebird · 16/02/2007 10:12

Xenia, thankyou. I was just about to say that paying for childcare enables not just you, but your partner too, to work. Therefore, you need to compare the cost to BOTH of your incomes, otherwise you are saying that if you didn't work, childcare would cost nothing.

Judy1234 · 16/02/2007 12:39

The first lesson is that before you agree to marry someone yo uhavea conversaion about parents, work and child care. You also do due diligence on his upbringing and analyse him, look at his parents and their relationsihps and check he expects to clean as many toilets as you over the next 20 years. Also pick someone who is on a par with you in terms of income and fitness too. You can't easily hoover if you weigh 30 stone.

Second lesson when planning a baby you discuss childcare in advance as if either of you might be finding and recruiting a nanny or nursery. It is not women's work. Lots of men go round nurseries or check out childminders.

The principal problem sadly lies with many women who won't give power ot men in these areas, who like to feel they have a competence men don't have as that feeds their little egos and who think that they and they alone on the planet know best how to handle little Johnny and don't let his father near him to change his nappy in a slightly different way. These women have only themselves to blame.

Then if you decide say to have a nanny then give half the list to him and half to you. Hopefully he's been the one looking up the nanny agencies and asking his male colleagues too. Then you each share the ringing round. Make sure he is there at all interviews.

Next rule - never be the one to be at home last and home first. Alternate or whatever. Try to avoid as a woman being the one who gets home first - that is the least fair option for women.

nannynick · 16/02/2007 19:19

HabsGirl, the figures were very specific to Knackereds' own circumstances.

Nanny is paid £10 per hour gross, for 50 hours per week. Nanny is therefore on £500 per week, which is 26,000 per year gross.
Nannies takehome pay is therefore £19,340.54 (2006/7 tax year, single person)

Knackered says it costs £28,500 to employ the nanny including employers NI payment.
Therefore the amount that Knackered needs to takehome, to have the SAME take home pay after paying for the childcare is:
£28,500 (cost of employing nanny) + £19,340.54 (nannies take home) = £47,840.54

This can then be reverse calculated so that you get the salary needed to have £47,840.54 as takehome pay.
Worked out that £1381.16 per week, £71,820.32 will give a net pay of £47840.83 for tax year 2006/7. So that's close enough.

You can play with figures yourself at: Listen To Taxman - Free UK PAYE Tax Calculator

Please remember that not all nannies are paid £500 per week, and not all employers of nannies want to have remaining from their take home pay packet, the same amount as their nanny has in their take home pay packet.

BuffysMum · 16/02/2007 19:29

Cloudhopper tell people to move to Addlestone - can commute to London and 3 beds start from £200k, nicer 3 bed semis are £260 plus but yes it's cheap for the SE! Oh and you can pretend you live in Weybridge!

nannynick · 16/02/2007 19:45

Though some roads in Addlestone are a nightmare to for car parking. So not great if you are a more than 1 car family in my view. As ever, it depends on where you live, I'm sure place I babysit in Addlestone is not representative of the place as a whole - though it could be!

Cloudhopper · 16/02/2007 20:10

buffysmum - I would so love to move somewhere like that. Our jobs aren't in Central London, they're in the commuter belt so we have many fewer options commuting-wise.

I had looked at all kinds of areas within half an hour's drive of here, but over the past 3 years they have all gone out of reach.

Mind you, we do like it here, even though it seems perenially unfashionable. But I really appreciate your kind thought of helping out.

BuffysMum · 16/02/2007 20:15

ah well that's thing we can only afford to own & run one car................... Nannynick there are a few streets that are really bad for parking - Alexandra Road must be the worst. Fortunately having an ex-council property, complete with lovely view of hideous Surrey Towers we can use the resdients car park! Also we didn't buy a house iin Alexandra road due to the lack of parking!

TBH most 3 beds are nearer the £280k mark but there are cheaper things around but it does mean having to go further for a school etc - and just try not to think about secondry schools. I really hope dd1 gets into Christs Hospital otherwise Jubilee High bottom of the league table here we come.....

It really is all about money and house prices and we are stuck here for as long as I can see.

HappyDaddy · 01/03/2007 10:49

I don't understand all these nannies / childminders earning £2 or £3 an hour. That's not even minimum wage!

Bozza · 01/03/2007 11:05

Nannies and childminders = different thing. I pay my childminder £3/hour, but so do several other parents. So DS gets dropped at 8 along with 4 other children and she walks them all to school for 9, and has earned £15 gross.

HappyDaddy · 01/03/2007 11:17

Ahhh, thanks for that.

sunnyjim · 01/03/2007 13:25

thank god DH recognises that in order for EITHER of us to work childcare has to be paid for as the answer isn't for the other one to be a f/t SAHM parent.

Neither one of us is cut out for that and we knew that when we met, and its one of the reasons we got married.

What I resent is the fact that society as a whole hasn't woken up to the fact that there are two parents in this equation. IF DS is ill guess who gets called?

Bozza · 01/03/2007 14:53

sunnyjim can't you specify for DH to be called? When I get called I always call DH in case he is closer at hand than I am - I work 23 miles from home. One time when nursery called an ambulance for DS, DH was two hours away so I raced up the M1 and arrived at the same time as the ambulance. Another time when DS had massively swollen eyes from hayfever, DH was working at home (2 mins walk from school) so was able to wonder round with some eye drops, then back home to work.

Judy1234 · 01/03/2007 15:02

You can put on school contact forms who is called first. When I worked in the City and my ex worked near home/their schools he was the one who did all the call outs.

HappyDaddy · 02/03/2007 15:44

Sorry to bump this but I have a question. DW's salary pays all mortgage / bills except my car insurance and shopping.

If I'm earning £25k am i mental in thinking I can afford a nanny on £300 per week? I haven't done sums fully so am just wondering if I'm being realistic or not.

FioFio · 02/03/2007 15:46

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nailpolish · 02/03/2007 15:48

thats what i thought Fio

or is the point, that you are bored at home with dd (NOTHING wrong with that) and want to go out to work (for various reasons not just money)

i am going back to work soon (yipee) and i will be spending approx £150 on childcare per week

its not the money its for adult company and to stop my brain imploding

and i DO get bored at home with dds all day

im not frightened to admit it

nailpolish · 02/03/2007 15:49

oops bit of a tangent there