Childcare costs

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It's been 8 years since I had a child in nursery. Facing the prospect of having a new one in childcare. I can't get over the costs! How do people manage? On my current salary I won't even have £50 a week left. Any tips or creative working patterns you can share to help keeps costs low?!

Do you know about tax free childcare?
Are you full time or part time? Can you condense hours to save a nursery day?

Child minders are usually cheaper than nursery. You have to make use of Tax Free childcare which gives you back up to £2000 per year if you meet the criteria. When your child is aged 3 you get access to some funded places.

Thanks for your reply. I currently purchase childcare vouchers via my employer, (I am going to be increasing those asap). We both buy them and usually use them for summer holidays/half term clubs for 8yo.

He works full time but will drop down to 4

I will also drop to 4 days I think and condense hours (I work 30 hours out of my contracted 35 currently) but just during the normal Mon-Fri 9-5. Wondering if there is a more creative way to do this w/o reducing Income? Also wondering I'm making the best choice with the childcare vouchers scheme. Any tips or advice most welcome! Panicking a little bit now the bills are going up!!

Well depending on where you are in the country you should be able to get a childminder for £4-5 an hour. If you use tax free childcare you'll be able to pay even less. Even if you're on minimum wage that's only half of your wage. (Or a quarter if there are two parents). It's bloody hard but almost always worth working.

So tax free childcare replaced the vouchers is that right? I wonder if I need to switch schemes or if it would make a difference? I've been using the tax free childcare vouchers since my eldest was little (now 19!!) The vouchers come out of our pay before tax so reduce taxable pay. I haven't considered a childminder but I definitely will now! We both WFH 80% of the week so fingers crossed should be able to manage CM sickness....hate the thought of being tied to someone else's holiday schedule but I guess it's not forever/can't have it all!!

Neither of us can give up work, we have too many other commitments, the house etc and wouldn't want to have to pay back mat/pat leave!!

There's a comparison article here on which is better tax free or childcare vouchers www.money.co.uk/guides/tax-free-childcare-vs-childcare-vouchers-which-is-best

Have you got a partner? If you’re single, there is help via UC available (you can still qualify for it on much higher salaries than you’d imagine when you have childcare costs). If that applies to you, it would be better than using childcare vouchers.

If not, tax free childcare might be a better deal for you than childcare vouchers. You could check.

Sorry. Missed the big about your partner.

tax free childcare might be better for you. How long until your child is 3? That will make a big difference.

If you WFH, could one parent start early and work 7-3 for example, and other work 12-8, so you only need half days?

Depending on the length of a day or half day at nursery and whether your employer is accommodating, you could look at doing 30 hours over 3 or 3.5 days (maybe utilising some flexi time in the evenings). You can then save paying for a half (or whole) day of childcare.

E.g:

8-5.30 pm Mon-Weds (1 hr break), 8.5 hrs x3 = 25.5
8-12.30 pm Thurs, 4.5 hrs x1
Total 30

Day 5 of the week is the most taxed and has no childcare vouchers /TFC available. It’s well worth cutting. Whilst it was too much for my mum to do a full day she could do a half day (we occasionally used a babysitter) which allowed my wife a half days pay without paying for childcare. If it feels awful remember it gets easier after 2 years.

Thank you!

Thank you and not born just yet! Trying to prepare...

What do you mean day 5 is the most taxed? Sorry if that's a bit dim!

If you can, try to do a longer day on the day your OH is doing childcare and vice versa. That way you can both do more hours and your kids still have a parent each of those days. Also see if you’re allowed to have a shorter lunch break so you can fit more hours into your day.

Thanks for all the suggestions so far, definitely open to looking into most of these!

I agree Op, it's so expensive. It's £70 a day here at our nursery. Can't wait to get the funded hours when they are eligible. Such high costs. I think what you've done sounds sensible re hours. Hope you can make something work.

Thanks, me too! It's roughly around that here too.

My niece works 30 hours over 4 days. She starts at 8, DH does nursery and school drop every day except Wednesday. She stops at 1 for just 1/2 hour lunch then 1.30 until 4.00 so 7.5 hours M,Tu,Th,Fr. She has Wednesday off and does the nursery and school drop off then collects every day from nursery and school. Eldest child has wrap around care after school. Wednesday she does some laundry, changes sheets, vacuumes house and batch cooks. She says it is hard work but only another year before youngest is at school next September. They both maximise childcare vouchers.

£61 a day here, own nappies and milk etc.

I dropped a day at work.

all the best

It is not always true that childminders are cheaper than nursery. In my area (London) they can work out about the same, particularly the ones with lots of experience.

However, with childminders you can stagger your working hours with your partner and only pay for what you use.

Half days at nursery are so expensive I don't think it's worth looking at doing less than a full day really.

I do 0.9 WTE condensed into four days and DH is full time still but works a weekend day and has a week day off. Means we only need three days of nursery. £62 a day here and we do own nappies/wipes. Average invoice is over £800.