Childcare costs - how do people afford it?

[Nadene]

I am looking into childcare for when I go back to work. I only earn £21500/year and it looks like it costs almost the same for childcare, so I am just wondering how people manage to do this???

The sad answer is - many people don't. Lots of SAHM mums are there because they want to be, but there are also some who would love to work but just can't justify it financially. Do you have any family who would be able to help out some of the time and cut down on your paid childcare?

Alas for many women, taking the cost if childcare into accoutn, it just isn't worthwhile to work.

Some people get help with costs through the tax credit system, so worth checking that. Also worth seeing if your employer gives any help (vouchers etc).

Also you should be open minded as to what sort of childcare you get - there is a usually a price difference which adds up over the month.

How old are your children?

Nadene - Are you a single parent? How many children do you have and what ages are they?

I went back to work parttime and earned £17.5k. My childcare for 2 kids 2 days per week was £400 per month. But we received £175 per month in tax credits. You would definitely be eligible for tax credits.

Now I work fulltime and my 2 kids are in 3 days per week. That costs £600 per month for 2 children.

On your salary you should bring home around £1350 per month after tax..... so it all depends on your outgoings.

Not really. How much do they give you back in child tax credits?

Nadene - Should've pointed out that our joint income at the time I worked parttime was £29k.... and we were still entitled to £175 per month tax credtis towards childcare.

I only have one child (3 months at the moment) and plan to go back to work when she's one.

£175/month in credits is good, but not that good considering it would cost that much per week for the childcare!

Ah Nadene that was calculated on our joint income of £29000 and childcare costs of £400 per month though! You get a % of your childcare costs back.

How much is it looking like its going to cost you?????

You will have an income less than £29k and childcare costs of more than £400.... so you will get much more!

My friends were receiving £400 per month.

I am blessed with the world's most fantastic MIL who said from the minute we got married that she would mind baby when I needed to go back to work.

I'm not due for 6 weeks and won't be going back until May next year at the earliest and hope to be able to work from home 2 days a week but we've actually had to 'bully' her into accepting some money off us. . I LOVE my MIL

But if your tax credits cover your childcare, what's the problem?

But if your tax credits cover your childcare, what's the problem?

The nursery I have registered with is £31/day, and their waiting list is pretty long. The other one is £45/day. Our joint income is £33500.

you have a joint income of 33k - and one DD - and you're worried about childcare costs

Ladymuck - It all depends what your committments are.... you only receive a % of childcare costs. They only look at income before tax.... so if you already have high outgoings that doesn't affect the decision on tax credits.

Nadene - I'll get you a link to the Tax Credit calculator.... that way you'll get a good idea of what you can get.

Doh - read it properly this time.

But you're still going to be making money?

I know one teacher who has £250 left over after tax and childcare each month. But as they need the cash for the mortgage she doesn't have a choice really.

Nadene - My dd and ds's nursery is £31 per day EACH!

You will be about £560 per month if your child is there fulltime. Thats about £6500 per year. Hardly £21k is it!!!

I'm slightly confused by your dilemma.... it certianly looks like its more worth your while going back to work than not as you are the main earner.

QofQ, from Nadene's original post it looks as if she was wondering whether it was worth her going to work due to childcare costs - fair enough shurely??

Nadene, have you looked into other kinds of childcare? Like a nannyshare? Not that I'm obsessed - I post this on all childcare threads it seems - it's just that i'd never even considered it before seeing an advert for a nannyshare. Just a thought. I currently pay £384 a month for my p/t nannyshare. Don't know if that would be more or less than your nursery costs, Nadene.

Nadene - you can go on the govt website, put your details in and it will tell you how much you can get here

Even at £45 a day that's only just half your salary

Katymac - Plus she'll get a discount on a full week.... most Nurseries do that.

Or have you thought of a childminder - approx 24 quid a day?

The way I see it is that the costs add up to £7440 per year, and after tax I earn is about £16000. So that's almost half. How do you afford anything else but rent and bills?

And the alternative is....?

But how else do you pay the rent and bills?!