Anyone else's voucher reserve running out?

[user1465146157]

Hello

We pay our nursery fees using childcare vouchers and because we started paying for those before LO started going, we had a buffer to tide us over.

We are 6 months in and it's now running out, my husbands has completely so will have to pay extra on top of the monthly childcare vouchers going out.

I think I knew this would happen but it's just dawned on us that we are going to struggle now that we pay out £243 a month each and then extra to make up the difference

Has anyone else encountered this? Where do you suddenly get these extra funds from?

£243 a month each was bad enough!

any advice or are we missing something, or is this just the way it is?

thanks
Tahira

That's just the way it is I'm afraid.

We have to pay full time childcare for 2 under 3s and our bill is £1400 per month. We use vouchers for £243 and £124 then pay the rest out of wages.

There's only funding in our area over the age of 3 or 2 if you receive certain benefits.

Do you get any tax credits or other help?

I’m shocked that you’re shocked tbh. Where did you think the money would come from?

I think I knew this would happen

Surely you definitely knew this would happen! There’s no way around it unless you reduce nursery hours.

Are you not eligible for tax free childcare?

I'm confused, if your monthly childcare comes to mlre than your vouchers then obviously you have to pay the extra...

I’m relatively new to MN. Can someone warn me if this is like a similar site where it’s anathema to suggest parents realise children cost money and plan for it, maybe even cut back on a few things?

I'm just surprised you had a buffer to begin with, did you start receiving them when on maternity leave? And that your childcare provider allowed you to pay more that £486 a month in vouchers, ours wouldn't.

It would have been sensible to pay a bit in 'real' money up to now so you didn't get the shock you're getting now but the boat has sailed there.

Anyway, check if you'd be better off with the new tax free childcare system. Or if you are eligible for any other benefits if it's a big struggle.

If you're not it will just be a matter of cutting your cloth. Save a bit less, spend a bit less etc. If you don't get child benefit the higher earner could either work a bit less or pay a bit more into a pension to reduce your income below the threshold.

Small children are expensive but the costs can go down when they start school depending how you rejig your hours.

It's rare to have a buffer, you have to pay the extra.

I keep thinking it's time to cancel my 243 per month and pay childminder based on savings/DH's 243; then I realise I'll probably be topping up from my salary so might as well keep the vouchers.

Our childcare is £1000 a month- and that’s including the 30 free hours from the government- before that it used to be £1400 per month. We use vouchers and then just top up the rest each month.

As mine are term time only I do ‘collect’ vouchers over the summer and use that to help reduce the September payout. But I think it’s fairly standard to need to top up the voucher scheme.

You might find swapping to tax free childcare will help - I've found, in general that it's cheaper if you have a child in nursery.

@user1465146157
I do get what you're saying - you know it's going to happen eventually but it all seems far off - and everyone around you seems to cope somehow?!
This is exactly what happened to me and I urge you not to get into denial and to sit down asap with your OH and do a full budget of all your outgoings (and I don't just mean bills, I mean all the little extras like take away, birthday gifts, outings) and work out where you can make cuts.

Keep a monthly budget to track your expenses and also maybe set up a separate bank account that you and OH can transfer the amount you need to top up the vouchers with each month, as your nursery will probably want a direct debit and that way you can make sure the funds are available.

Honestly, it sucks, but it's the reality of having kids if you don't have any free childcare options like family or friends who can take care of them regularly.

I've recently taken on a second job in the evenings to make up the extra that we don't have from our day job incomes. Again, it sucks but it's worth considering if you really think you're going to struggle. There are also options like selling things from home online etc which I do a bit of every time we need some extra cash but need quite a bit of work to be considered a constant income.

Anyway - sit down and work everything out before you get yourself in a pickle like we did, and be open to the fact that you will have to cut back or find other income.