Update - with figures to help people in similar boat.
We've been interviewing nannies, but it seems our job is unattractive to the good ones as although we are willing to pay up to £500/net per week they can earn 150% of that looking after 2 children in a nannyshare and there are plenty of other jobs (inc nannyshare ones) which are only 4 days pw and/or which finish at 6pm. Couple of nannies with own child are interested for £385/net pw but we are not 100% sure if we want responsibility for another child in our house even though we have employer's liability insurance in our home insurance policy.
We've also rechecked the finances and a nanny is going to cost c.£3800 out of our net income per month taking into account employer's NI, getting temp nannies in to help with holidays & sick days, nappies, food, heating etc. If we got a fab nanny we would be prepared to borrow to cover this cost as it is only for a couple of years but realistically I am going to want the moon on a stick from anyone in that position as that will be our main household expenditure.
On the other hand DC1's nursery for 2 DC will cost £1800 pm (after a small sibling discount) out of our net income. The 3 year old gov grant money will have to go to DS' school but if we took him out of that then it would reduce daycare fees by I think about £200 pm but not sure, anyway DC1 is already at state pre-school and has friends there so we won't change that. DC1 likes the nursery and we trust the staff.
Sooooo we've booked DC2 into the nursery now at the risk of losing a £300 deposit if we change our mind. Then the plan for DC sick days will be grandmother + a temp nanny to help her out at a cost of c. £130 per day (that would otherwise be the plan for nanny sick days if we went for a nanny).
The plan for school pick-up would then be to get an au pair to help with older DC aged 4 but I will have to do nursery pick-up for baby as we wouldn't want an au pair to have any sole charge time with her at all. So say £550 pm for au pair inc food & heating etc.
I am really quite upset about it all, not so much the finances as we always knew having children would take all our earnings whatever our life choices but because there is no "one stop" "no worry" solution allowing me to concentrate only on work when at work - my male colleagues just sail into work leaving all childcare worries to their wives whether their wives work or not. I do somewhat wish DH wanted to be SAHD but can understand why it wouldn't suit him and it is better for the family if we are all happy and productive I suppose.
What is it we have to say to get us through it all? This too shall pass? It's an investment? It will all be worth it in the long run?
Hey ho.