I think you have to juggle your priorities, and decide whether you are looking at returning to teaching long term, and whether you are looking at long term or short term benefits.
Many of my teacher friends gave up after having DC. Some wanted to stay at home whilst their DC were small, but then returned to teaching when their DC started school. The downsides of this is that most of them have had to get full time jobs (part time hours that suit is rare), and this means that whilst they were there when the DC were small, they are now not there to pick their DC up from school, and have to miss key events like nativities, sports days etc... Other friends have not found it possible to get part time work, and so have gone into other related areas like tutoring, childminding and working as a TA instead.
However, I knew I wanted to remain in teaching, so kept working, but reduced my hours to a minimum when the DC were small. I initially went down to 2 days a week, and increased my hours annually as my children got older. Yes, initially it meant that I was away from the DC when they were younger, but I consider that to be balanced against the fact that I now have a job that works around my children. I'm still part time, but because I've been there a long time, I've always been able to submit my hours and as things like, I can't work Tuesday / Wednesday afternoons because I have to take my children to extra curricular activities. Also, being part time, I have always been able to juggle my hours so that I am there for key events like nativities etc. Having been there a long time and 'proved myself' my work are very good and let me have time off to take my daughter to her ballet exam etc...
Although it does mean that for a few years you are working for little / no money (although if you take a year's mat leave, and then use the free childcare from 3, this should only be 2 years), there are the non financial benefits to consider:
- You are still contributing to your pension
- It is only term time, you will have holidays (and if you can get a term time only contract, then you will not be paying out holidays)
- You have already got the hours / goodwill of the school as and when you are ready to build up your hours again. It puts you in control, rather than the school.
I would say do keep an eye on the bigger picture. I think so many people focus so much on being there when their DC are little they forget that their DC still need them when they are older. Mine are 10 and 7 now, and I still work part time, because I feel they need to have me around after school, and I am able to juggle my hours so that I am around to take my DC to clubs / parties, help them with homework after school etc.
Obviously, you have to do what is right for you, and only you know what your long term plans are. But I would say that your children are only home all day for two short years, (taking away the years mat leave, and then free childcare), then they start going to nursery (when my DC did this, I worked mornings to work around their nursery hours), but they will need / want you around for another 10 years to come. This may seem a long way off, but it comes around quick and I think whilst the needs are different at the different ages, I wouldn't say that children need you any less when they are older, so you do have to factor that into the equation too.