Budget for reducing working hours

[LittlemissBT]

Considering/hoping I may soon be able to reduce working hours to part time but just trying to work out outgoings etc, my list so far:

Wages would obv decrease but therefore so would tax, NI, student loan repayments & pension contributions

Childcare costs would remain the same

Bills would mostly stay the same - maybe more heating in winter?

Less money needing to be spent on work clothes

What else should I be considering that I'm not?

Lower travel costs

Poss lower food bills as more time to cook

Will it affect any benefits?

Can you fix the working hours to reduce your childcare?
ie if you don't work fridays, you have no childcare costs on fri.

What are you going to "do" with the extra time? Because if its go into town, do a little shopping and have a coffee with a friend, it will add up! On the other hand, if you use it to source cheep market veg, which you can't currently do, it can be a saving.

You might like to try and increase you pension contributions, if possible, to try and maximise any retirement fund: working part time can really damage your retirement.

Thanks for the ideas - much appreciated - childcare is based on fixed days and shift cover so have to pay extra to cover flexible arrangement etc but yes to more time to cook, source cheap food and grow more of our own.

In receipt of child benefit but from the direct.gov calculator would not be eligible for working tax/child tax credits etc - does anyone know how accurate the calculator is?

On average how much does part time working impact on retirement? Is it easy to work out?

Free time will be to spend time with DD and do more round house - garden, cleaning, little walks out etc. maybe a little too ambitious but just more time as a family would be fab.

I think that as long as you are earning enough to pay NI contributions or you have children under 12 and get child benefit you get the relevant years towards your state pension.

If you contribute to a private workplace pension that is not a final salary one that depends on how much you put in, not how many hours worked, though if you employer contributes that would be less percentage wise.

Final salary pensions are affected by how much you earn though.

Re tax credits, what will your household income be before tax once you reduce your hours, and how much will you be spending on childcare per week?

Travel may not reduce if you have a season ticket, likewise you may spend the same of clothes for work. Your opportunities for promotion may be less and you may be perceived as less committed to work. Your workplace pension will be reduced but you may be able to purchase extra years. You may not be able to increase your hours in the future if you need to. You may find yourself picking up more housework. You will be expected to fit in medical and dentist appointments etc. etc. on your days off. You may have less entitlement to bank holidays so need to pay back some leave.

On the upside you will have time with your DD.

you may find your utilities bills go up, if you're going to be at home more as a result.

Walk to work at present, so no change there. Medical/dental appointments arent allowed in work time at the moment- need to use leave or take unpaid. No career ambition anymore since DD was born, so not interested in promotion etc but will bear in mind the start of leave year - thank you so much all