Cost effective childcare for 3 kids

[lboogy]

Hi all
I have a 2.7 year old and twins due November 2021. I can't afford not to work sadly so I'm trying to work out the most cost of effective solution. I live in west London
I currently pay 1273 for full time nursery (2k government top up included)

I'll take 6-9m off by which time D.C. will be 3.9 months and will go to school from age 4 as she's an august baby.

By doing that I face the prospect of 3 lots of childcare at £3572 per month. I can't afford this expense but I do earn more than this a month so I'm better off working if I can find a better option than nursery for 3 kids.

I've heard nannies are about £18 per hour which works out more expensive than full time nursery.

I'm not keen on an au pair as I don't like the idea of having a stranger in my house but I may not have a choice as that seems cheaper overall at around 15-18k per year.

I'd appreciate some advice on this from anyone whose been in a similar boat or is a nanny / childcare provider

Thanks in advance

I'd think you wouldn't be able to do an au pair as they're usually only school aged children and 30ish hours a week really.

Is a child minder an option?

Your nanny cost sounds too high - you are in the most expensive area in the country but even so we only pay £11 per hour. I have heard London is around the £13-15 range.

I’d think carefully about what will happen when the eldest DC goes to school. Will you use breakfast club etc for that? And can you do the school run?
Benefits of having a nanny mean they can care for poorly children rather than you needing to take time off plus they come to your house so you don’t have to stop the DC off to nursery (plus school after the first 6 months)
I’d get in touch with a nanny agency and also sone childminders to five out exactly what type of costs you are looking at.
Au pair is not meant to be left in some charge of children all day, they are more of a mothers help so that would not be an option for you.
Good luck and congrats

You nanny cost may not be that far out. You may be able to pay £15 gross per hour but you may be needing 50 hours per week. So with Employers NI and pension that could be £3850ish per month cost to you, plus activities, transport, payroll admin.

So nursery may be lower cost at first but consider what happens when your eldest starts school, what care would be needed then? Are there any local childminders who have capacity to take twins - how much would that cost?

Do you and your spouse earn under £100k each? If so are you eligible for Tax Free Childcare scheme? It could help to reduce your cost, as with 3 children you could have childcare cost up to £30,000 though the scheme and if you paid £30k per year then you would pay £24k of that, £6k would be the topup from Government. You can pay more though the scheme but you don't get the topup on the remainder above your cap.

A nursery is definitely the cheaper option than a nanny. Otherwise a childminder might work. Twins end up being expensive because you have to pay for care at the same time

Thanks everyone. Lots to think about. Yes we earn under £100k each and we get tax free childcare at the moment. When my D.C. turns 4 they will go to school. Haven't thought about after school yet. I did look into a childminder but I've not felt comfortable with that choice.

My childhood experiences haven't been good . I know it was years ago and things have changed but the mental scar remains.

But from the sounds of it I may have to consider it. Thanks again

Don’t underestimate the costs of wrap-around care. Near me holiday clubs are effectively nursery level of fees if you need 8-6 (you can get cheaper but shorter hours) and when your eldest goes to school, there is a good chance they will faff about with 1/2 days etc as part of the settling in period. A nanny may well work out the most cost effective for your daughters first few years of school and until your twins get free hours.

Also to be aware some holiday clubs don’t take the under 5s so you’re likely to have fewer options with a summer baby than other reception children. That was an unpleasant surprise for me.

Your lo will be entitled to 30 hours free childcare the term after they turn 3....equating to around 22 hours per week if stretched through the year. ..you can use this at any registered setting in England that takes it....childminder nursery or school. If you can reduce your hours to part time that could help a lot. I understand you have your reasons not to consider a childminder but not all work alone you can find ones with apprentices or Co minders...with up to 4 adults working together. Hourly rates vary according to where you live between £4 and around £9 across the country, per child...but some give discounts and you will be able to use tax free childcare.

If at all possible, see if you and/or your partner can do some sort of compressed hours to cover e.g. a day a week each. This will save a vast amount. You also need to consider whether to use shared parental care for up to 12 months after the birth of your children, rather than just 9 months.

As others have said, you need to think in the round about this, because yes there is the wraparound for school, and the holidays.
One issue you might face is the ratio for childminders. It was (and I expect still is) 3 max under school age. So if you want all 3 for a CM you would be taking all the spaces. It is unusual to find someone with 3 spaces free. But you might manage once the oldest is in school.
It is helpful having all 3 in one place, both logistically, and for them to spend time together.
In terms of cost, you just have to get through those tough 2 years before the 3 years free childcare. I have found school age childcare cheaper than the years before early years childcare. It is expensive, but you just need to get through it, saving in advance and using credit if necessary to get through. Its generally worth hanging onto your job for if possible.

A nanny charges per family not child

Around £14/15 gross for London plus pension and employers ni

Costs may be the same for nursery but the HUGE diff is with a nanny is you get up and go to work

You don’t need to get 3 kids up and dressed and drop off to childcare then go to work

Nanny will cook meals for kids. Maybe if nice make a large lasagne so enough for you and dh for tea

They will do kids washing

Once eldest is at school you would need to find a CM that does that run plus what do in school holidays if use nursery for twins

Do really consider a nanny. Will make you life less stressful

@Starface
The ratio rules are a bit different now, childminders can self vary for good reasons, accommodating a family would fall into this and if you used one of the growing number who don't work alone it would bd even easier.

I’m in a similar situation, I have a 3 year old and expecting twins imminently. I’m in a cheaper part of the country though so my childcare options are financially different.

Your first DC will be eligible for 30 funded hours from this September? So the savings you make from that can be put towards childcare costs. You continue to receive 30 hours throughout your mat leave. So if you can afford to do it, might be worth maxing out your leave.

Also it’s worth a chat with nursery to see what sibling discount they can offer, if you haven’t already. They may give you a bigger discount for 3 siblings.

Failing that a nanny might be a good idea, especially if they offer tax-free childcare. It doesn’t make sense financially for us to employ a nanny as nursery fees are cheaper than hiring a nanny, but it is different in London.

Childminders seem to be the cheapest option but we prefer the stability of nursery cover.

My nursery offers a 10% discount for the older siblings, and that combined with the 30 hours funding brought my 3 day a week bill down from £650 to £200 for my 3 year old.

Can you and your husband condense or reduce your hours so you could have them at home one day a week? Do you have family help? What's your plan for childcare for the eldest after school?

Lots of great suggestions. Thanks everyone,
I'll look into condensed hours and I might be able to get grandparents to do a day a week.

I thought the 30 free hours becomes 15 free hours over the year? I worked out it saves maybe £160 a month.

Also our nursery does offer 10% sibling discount. But it's still looking like £320k a month for nursery for all 3 if they are in full time.

I'll try and reduce the days they go and that might help some.

It’s 30 funded hours in term time. It works out around 22 hours a week if stretched over the whole year. Provided both parents are working and not earning above the threshold you should receive the full funding. This continues during maternity and paternity leave.
DD receives it currently and the contribution is £396 from the LA which shows on the nursery invoice.

@TheMagicDeckchair

It’s 30 funded hours in term time. It works out around 22 hours a week if stretched over the whole year. Provided both parents are working and not earning above the threshold you should receive the full funding. This continues during maternity and paternity leave. DD receives it currently and the contribution is £396 from the LA which shows on the nursery invoice.

Thank you! That's really helpful to know

Stretched funding is a bit more complicated as it depends how many weeks thdcsetting is open you divide total yearly hours by opening weeks to get weekly entitlement but if your child is leaving for school nursery they may not pay the full stretched fundingbasvyour LA will need to keep enough back to cover the new term of 15 hours in school.....anyone leaving for school nursery in September would need to cover (pay) around 50 hours this term in my LA.

Over the covid epidemic more childminders and private nurseries were able to take children than school nursery who in most cases chose to only take key worker and vulnerable children last lockdown. Despite legally being able to take all 3 year olds.