Child care schemes for higher earners?

[FTMaz]

Hi everyone,

Ive seen a similar thread to this which received a lot of hate so before I start please do not think I am looking for loop holes or to be dishonest I am looking for genuine schemes/ incentives.

my son is 1 year old and due to start nursery the end of April. I am returning to work part time earning 34k (total wage this has already been worked out pro rata). This is on an employed basis. My partner and I are not married but we live together. He is self employed and earns upwards of 200k per year including dividends. I have looked at the free nursery hours for working parents and based on my partners wage we are not eligible - fair enough. However does anyone know of any other schemes or incentives for child care that apply to those earning over £60k. I realise that we are in a privileged position, however my understanding is that these schemes are to allow people to work and it seems that for me, given the wage I will be earning it may not be financially sound for me to do so albeit I am returning to work for non financial reasons (I work with serious child protection cases and feel that currently I am not using my skills which are valuable).

thank you for replies in advance!

On £200k income no, I don’t think there are any schemes for 1 year olds. I believe you will get 15 funded hours at age 3 though as that is universal.

I don't believe there are because your total household income makes it viable for you to work.

Not being rude but is there a reason you aren't married? Are you on the mortgage/in the will etc? Just need to make sure you protect yourself if anything happens.

No, your part time wage will be more than many's full time wage returning. Between you both it should be manageable to cover the hours your child will be in nursery.

Any reason why it would just be you paying?

the only thing for that income would be 15 hours at age 3.

Hi
it won’t be ‘me’ paying we have a shared bank account so it will be joint. Again, I’m well aware that the household income is high I just wanted to make sure I didn’t miss anything.

Yes, the house is in both our names. We are engaged - planned to be married during Covid and rearranged for the end of the this year 👍🏼

Yes I’m well aware we can cover the fees - just wanted to makes sure I didn’t miss anything.

No don't worry, you aren't missing out on any secret schemes for those on a quarter of a million pounds 😂

We live in a strange world don’t we…people resent supporting those on low incomes or people unable to work and also resent those who earn and pay considerable tax. Sigh.

I don't resent you. I think it's hilarious!

And to add, I also don't resent supporting those in society who earn very little.

I would however, resent supporting you!

Your facetiousness would suggest otherwise. Sad really, especially considering I do a job in the public sector supporting children. Anyway…have a lovely evening.

I don't think you'll find many people happy for tax payers to fork out to give you free childcare, no matter how noble you feel your career is.

You’ll get the 15 free hours when your dc is 3 but that’s all I think.

It’s important that you view the childcare costs as a joint cost, though. It should still be financially viable as your DP is a very high earner and even if the cost of nursery ends up being not far off your salary it wont be for long until the 15 hours kick in. Plus, consider the value of pension contributions being made by your employer and the value of keeping your skills up to date.

Oh crikey you’re going to get ripped apart and I’m inclined to agree with others.

We are in a similar position - husband is a high earner, my annual salary is less than is monthly - it would never occur to me think that my low salary meant I was entitled to childcare, we are a joint entity and our household salary is massive.

You are missing something - no high earning households should expect the tax papers to fund their child care. If you don’t want to pay childcare don’t work. Simple.

If your partner earns that amount he should have a decent accountant that would know of any loop holes you could take advantage of.

Seems a bit odd a £34k earner gets nothing, but a £99k earner would get 30 hours plus tax free childcare.

Not very good for the lower earner in a relationship ship, which most of the time is still the woman.

Her DH is paying a shed load of tax, seems a bit unfair to be excluded from a benefit they’re funding for the other 98% of parents.

Your child care costs will be less than £34k for a part time place and you will receive the universal hours.

So it will be "financially viable" for you to return to work.

You also say that you want to return to work to use your shortage skills.

And clearly if you share finances with your high earning fiancee you will be able to afford childcare between you.

So no, there are no further "incentives" available.

Thanks, a very useful way of looking at things!

Your husband earns 200k. It would take me 8 years of spending 0 to get 200k. Let people earning less have free childcare

@Schoolchoicesucks there are no universal hours until age 3.

The childcare system is totally fucked up if a family earning close to 250k a year can claim benefits.

Yea this was kind of my point. If we both earned 99k we would get it! Also if your partner is away for 6
months of the year at another address you get it. I know a woman who husband works in Dubai earning a great deal more than my household income and they use the free hours, so does another friend who is married to a footballer. There are much higher earners than us taking advantage of the scheme.

It’s not odd at all, it goes on income for both parents. They could both earn 99k each and would benefit from the funding. The fact of the matter is, the father earns upwards from 200k. Yes, that’s a lot of tax but also a lot of earnings! It’s got nothing to do with the lower wage not receiving anything.

Op, on that amount of earnings you won’t be eligible for any sort of financial support towards childcare and nor should you. There’s no loophole you’re missing, you’re not missing out on any support. Your household earnings are just too high for any sort of financial support towards childcare. As it is, the 15/30 hours funding is set to decimate the childcare industry.

there are loop holes for some if you read my previous reply but that would be with anything.

I am more than in support of people on lower incomes receiving the help that was never in dispute.

@Daisytails

£200k + £34k is £139k after tax.

£99k + £99k is £130k after tax. Plus 30
free hours and tax-free childcare… which could be worth £10k.

So - their income ends up being exactly the same, despite one family technically earning £36k more.