Panicking I won't be able to afford childcare!

[thethingsiforgotinfrance]

I'm just seeking reassurance - or a reality check. I earn £43,000 a year and am panicking I will be really struggling to find my DC through nursery. The costs seem to be around £800 a month. Please tell me you all manage!

We manage. We earn just over your salary between us and our childcare is only £600 per month because we have a lovely childminder who has very reasonable rates. We manage quite happily :)

YANBU, it's a nightmare. I work for the princely sum of £10 net, per month after nursery fees.
We're mortgage free so very very lucky but I don't know how others do it.

Is £43k net or gross? If net, not so bad.

Well we have a joint income of only 27 grand a year, which is way less than your single in come. We managed to pay 400 quid a month, so I'm sure you will manage.

YABU to be panicking.

Don't panic, draw up a budget.

Panicking won't help anything.

Telling us your income won't help anything either as we have no idea as to your outgoings.

Does work offer vouchers? That helps a lot, me and DH are going to use these and it saves us around £135 per month jointly. :)

You can get tax free childcare vouchers via salary sacrifice of £124 a month

Then there is the new scheme coming in but I don't know a huge amount about it. Then there are free places when your DC is three

Its a big cost but I manage.

EM - I wish! (no, really, I do!) Gross income. Outgoings the usual really: mortgage (£300 p/m), car insurance, fuel, gas, electricity, phone & broadband, mobile phone, groceries, clothing, shoes. Two cats.

:)

Work do offer vouchers, yes - could anyone kind explain to a numpty how they work?

I think on that salary you can afford childcare unless your other living costs are very high. If you're talking 5 days 8-6pm, round here (south east) that would be over £1,000 a month for one child. Although obviously it depends how many children you have. Have you looked into childcare vouchers if that applies to you? Also, do a costing for at least the next 5 years so you can factor in the 15 hours free care that kicks in after the child's 3rd birthday (assuming that doesn't get withdrawn). I think there may be a discount for full time care from some providers -- not sure of that as I've been getting quotes for 3 days.

If you Google childcare vouchers there is a clear explanation on one of the govt websites I think and if you ask your work for the name of the provider they will have their own leaflet that explains. Basically you get the tax and NI back that you would otherwise have paid on part of your salary.

Sorry for cross-posting other stuff!

Work will deduct the £124 (it might be 123) from you gross wage per month and the vouche provider will pay that direct to your childcare provider (as long as they are OFSTED approved)

So you dont pay tax or NI on that money and therefore save a bit

If you are basic rate tax payer its £243 but higher rate its capped at £124

I think the scheme closes to new entrants very soon (may even have closed) as there is a new scheme but other than the headline of being able to claim back £1200 per year I don't know a lot about it

"Outgoings the usual really:"

YAB very naive if you think there is such a thing as "the usual".

You should ask your work how their voucher scheme works, there are a number of different variants.

Can I ask if you actually have children, or if this is just speculation?

Just one child unless it is twins - god knows what I'll do if it is twins

Thanks Phineyj - that's really helpful, so where I pay tax now, in the future some will go towards nursery fees, have I got that right?

I just worked out that having DD in normal nursery (baby room) is the same as the local private school reception! I am now considering sending her private as the fees are so similar (whereas they drop when she moves up and at 3yo you get 15hrs per week free) but it is a real scrimp and I am on a lot less than you, but thankfully mortgage free.

Budget and add a bit just in case. I think most people breathe a sigh of relief when they hit 3 and childcare costs diminish. DD only goes in for 1 day a week but it is the same amount per month as my council tax.

I wish my mortgage was £300 a month :). It can seem overwhelming, but it just becomes the new normal once it starts. Maybe write out a quick a dirty budget so you know what you've got to pay out each month and what money is left over for your clothes/shoes/pretty things for DCs :)

had a google

The current scheme doesnt end till 2015, then there is a scheme where you can claim back 20% of your costs up to £1200 per year but only if both parents work, which knocks me out as DH doesnt'

Vouchers are deducted from your salary - you do not have to pay NI or tax on that amount (which can be up to £243 per month). So it means you can save around £900 per year.

Cross posting with my slow typing :)

Trills - sorry if I was being naïve, my statement there was meant to explain there weren't any huge debts or a massive mortgage for example.

I don't have children yet, no but all going to plan should be trying next month therefore am experiencing mild panic at childcare costs!

£300 a month mortgage?

Arf at 'the usual' outgoings.

I think you'll manage.

Also.......do you need ft care or do you have a DM etc who could do one day? My DM does this and its a big help

Obviously not an option for everyone and I am lucky but if you do have family who could do a bit it can help

catgirl would single parents therefore be eligible for claiming back costs? I wouldn't be going back to work until 2015 :)

Our childcare is £924 a month and we are basically paying that and bills every month, and counting down the days until dd is 3 and we get 15 free hours!

I was going to move her to a cheaper nursery when she was 2 but by then she'd settled and made some friends so decided to stick it out. It sucks but it was our decision to put her in this nursery and soon she'll be in school and we'll have some money left a week after payday!

You'll manage op, try proper budgeting as we didn't do this at first and have found it useful recently.

I don't have family to help unfortunately, as yes that would definitely be my first choice even if not every day it would help!

What I am saying is that we can't do your budget for you. We can give advice on where to get more information and on what help you'll be entitled to but we can't do the maths and we can't just say you'll be fine without doing the maths.

£300 mortgage sounds tiny tiny tiny to me by the way :) You couldn't rent a garage where I live for that amount (unless you mean per week instead of per month).