Childcare costs

[SweetheartTreacleTart]

Hi everyone,

I wanted to know how you managed to go back to work after your mat leave ended. I earn around £33k, but I am not going to be able to afford full time nursery fees.

I know that I can apply for support, but when I have done the online calculator things the additional finance from the government doesn't really cover full time care.

Do most people cut down their hours after maternity leave? Stop working all together? I'm so confused as to how it will all work and slightly disappointed that I can't afford childcare.

If you have a partner split the cost of the childcare 50/50between youand rhen it’s not so much coming out of your wages

@Cancerisacunt I don't have a partner, I suppose thats why I'm worrying even more.

At £33k I’m surprised it’s not cost effective to work. It’ll be tight but have you factored in:
Childcare vouchers from your employer if you qualify for these (you can start getting them now, before you put your child into childcare to build up a stock for early months back at work).
If you don’t get vouchers then the governments tax free childcare account effectively gives you a 20% reduction on all your childcare costs.

Then once your child is 3 you’ll get 22 hours/week subsided childcare.
You might qualify for some of this once they are 2 but I’m not sure what the income threshold is.

How much are the fees? I earn 34K and have always been able to afford the fees, have used childcare vouchers from work etc. If you’re a single parent you might get extra help.
You also need to view these high costs as short-term. Once you’re child hits 3 you can get 30 hours a week of free childcare. Then when they’re at school costs are marginal with use of before and after school clubs or a few hours of a childminder. It’s almost always worth working if you can..!

If you don't have a partner, how will you not go back to work??

How much are the fees? What is your monthly take home?

A lot of mums go back part time or use a mix of part time nursery and family care to enable full time working

I earn less than that and an on my own and had to pay nursery fees. I guess it depends on all your other outgoings?

Is a childminder cheaper?

You get vouchers from work which basically means you're paying out of your gross salary which makes a real difference.

I've just done a very basic Child Tax Credit calculation based on £32k single parent income with 1 child and £200 per week childcare costs. Results attached.

Chase the baby’s father for maintenance?

@newmumwithquestions and @Oly5 thanks. I will look in to this. I'm not sure how childcare vouchers work but will do my research as I am confident my workplace does offer this. The nursery fees I have seen for the nursery by my work place is £1400 for a full time place with food. That is more than half of my monthly take home!

I see what you mean about it being short term though and I definitely want to remain in work.

@sunshineintheclouds Sorry if I've not been clear, I want to remain in work and I am intending to go back to work after maternity leave.

@cancerisacunt Thank you but that it's an option for me.

@cancerisacunt not an option

How much is your nursery fees? I used to earn that and clear a lot more than nursery fee each month. Are you sure? I don’t get tax credit but has childcare vouchers x 2. Nursery fees full time now is slightly over £1100 for me. (Under 3 nursery room fee. DC going into preschool after Christmas and will be cheaper and also will have funded hours. Do you take hour just under £2000?

You are entitled to that money for your child. If things are going to be so tight you should consider it.

Otherwise wfh and do long compressed hours

that is more than half of my monthly take home!

But can you afford to pay for it? Childcare is unfortunately very expensive-I don’t think anyone has ever said it wasn’t. Most people either have family help, work around the children (shift work or working part time/evenings) or just accept a large chunk of their salary will go on childcare.

The nursery fees I have seen for the nursery by my work place is £1400 for a full time place with food. That is more than half of my monthly take home!

You should be fine I think. It gets a lot cheaper once they get to the term after 3yo. And make you don’t have two at nursery at the same time.

1400 is a lot.

Have you looked for a childminder?

thank you @FATEdestiny

@NapQueen I'll also look into that as an option too actually because 1400 is a lot.

Once I include all childcare vouchers and child tax credits it might just be manageable.

I just wondered how other single mothers had managed that's all and I've got some helpful replies. Thank you

Re childcare vouchers chase up with your work now re their scheme. It’s stopping. I think the cut off is April 2018 but it could even be the end of this month.
Get your vouchers adding up now if you can (depending what maternity pay you’re on). Then when you actually go back to work and have your updated nursery fees have a look at what’s most cost effective- it maybe that for full time childcare you’re better off with the government account. Money savingexpert has a good description on the website.

I believe at your income the new government scheme will give you more. It’s £500 every 3 months, up to £2k a year per child. With childcare vouchers, it’s only just under £1k a year. The catch is the maximum you can claim is 20% and capped at £500 per quarter. But for the early years this will work out more than the vouchers. The good thing about vouchers if you are allowed to sign on now, is that they have to continue to pay while you are on maternity. This could work out beneficial for you because they can’t deduct from statutory maternity pay.

Look into childminders. I’m a cm and my full time spaces are approx £800pm

FWIW I managed to work as a LP because my mortgage is tiny and tax credits helped pay for nursery fees. I couldn't have done it otherwise, a months nursery fees were more than my salary.

It is confusing but definitely worth looking into childcare vouchers versus the new childcare scheme from the govt. one will be more beneficial for you. Then add in tax credits.
It seems like these high costs will never end but once they turn 3/go to school you will be glad to be working as so much more of the money is yours to keep! It annoys me that the govt help only properly kicks in age 3!

Have you looked into childminders? We switched from nursery to a childminder and for our two it's about £30 a day cheaper.

It's also worth considering the long term costs of working vs not working. Would you be able to get a job easily if you wanted to return to work? Would you be earning the same as if you hadn't taken a break?