Childcare costs - how do people afford them?

[KCpip]

Sorry, not sure if I’m posting this in the right place or not. Just wondering, how DO people afford childcare costs? Is everyone earning shed loads of money compared to my family? Just genuinely curious. We have 2 DD and I’m recently finished my 2nd maternity break. The only way I can do any work is with help from family which is fine, totally happy with that, but would love 1 more day a week so I could bring in reasonable income instead of scraping by each month. Unfortunately the sums don’t add up. Even if it was just one day with a childminder. I’m always amazed how many people use childminders and nurseries - how do they afford it?! I know lots of people will say it’s all relative etc. I suppose I’m just keen to hear if anyone else is in the same boat where family help is great but never enough to work enough hours for reasonable income but childcare is unaffordable...

You might get tax credits towards it. The child care element is I think up to 70% of childcare costs.

Staggering the children so they get the free hours or are in school by time the next one need childcare?

Working around each other?

Family help (financial or practical)?

Tax free childcare/childcare vouchers?

At lot if people get working tax credits towards child care. Depending on income. Now I've had my 3rd baby I can't afford childcare and won't leave her with people or relatives so I've had to hand my notice in

Higher incomes than yours
Lower outgoings than yours
Not having a second child until their first is at school
Save for it before falling pregnant

... for example

We spend £1000 a week on childcare, no family help, and we only do the child voucher scheme (save 20% on £243 x 2, me and DH)
We saved loads when we were TTC for any 'issues that may arise'
We've just cut back, we don't spend anything...it won't be like it forever.
I actully make a loss going back to work after childcare and pension, but in the long run it's better as I wouldn't get my current position back and would have to start at the bottom again!
DH earns slightly more than me.

DH was self employed and I worked nights. It was the only way we could manage. My dp' s did a lot of school pick ups for me so I could get extra sleep.

When I went back after my first, I made just enough to cover nursery (£800-900 a month, depending on the month) with maybe about £200 left over. My dh paid most of rent and food while I did nursery and a few other expenses. Then I was earning significantly more in a new job (about £2100) and nursery went down significantly with 30 funded hours and tax free childcare. Then it was comparatively easy.

We waited to have our 2nd til the first started school though as no way we could have afforded two in nursery. We have no family help though so no other options for us.

Compressed hours at work so I work 4 days instead of 5 without the financial hit. Lucky enough to have family help for two days, and then use tax free childcare to help pay for the two days in nursery - 20% paid. You’re eligible if you and your DP each earn less than 100k per year as long as you don’t claim tax credits etc. Also, we are in an area where childcare is cheaper than some other places in the country - around £300 a month for the two full days a week. A big outlay but not as bad as what some people have to pay!

Couldn’t afford to pay for two DC, and I think GPs would struggle to cope with two little ones so no plans for a second until DD is at least 3 and gets the 30 hours free, or is at school.

It’s hard but it’s for a relatively short time. Your older DD will one day cost less in terms of childcare and if you can’t make working an extra day work now you will probably be able to then. I’m in a position that my hourly rate (and DH’s) is more than the nursery rate so it’s worth my while but with two to pay for we’d have to rethink and consider one of us dropping hours or DH trying for compressed hours too.

We don't get any family or tax credits help so I didn't go back to work until youngest was about to start school.

It was honestly cheaper (though very tough at times) to scrape by on one wage.

We now use a tax free childcare voucher scheme towards afterschool club and holiday clubs.

Wow, thanks for the responses. It’s making me understand a little better. I know everyone’s circumstances are different! I didn’t realise childcare could be tax free. If I were paying a childminder £4.50/hr does anyone know how much might be saved if using childcare vouchers? I think my other half can get them at his work. Would it be less 20% of £4.50?

Childcare vouchers are different to tax free childcare. Times running out to get childcare vouchers. You can compare which would be better for you online.

You need to use ofsted registered childcare to use either I think.

We waited to have our first until we were both in good jobs, and i had been in my role long enough to get full maternity pay.i also got a job where there is a subsidised nursery on site to reduce costs. If i sent my LO full time it would cost £700 instead of £1300 a month at a chain nursery.

Basically i planned everything to make sure we could afford it.

If we have another baby, it won't be until my LO starts primaty school as we wouldn't want to be paying 2 lots of fees

By waiting until you earn enough or have saved enough to afford them ( but not always possible depending on age/fertility etc)

You apply for tax free childcare online. It’s fairly new and it’s to replace the childcare voucher system. Just google it and the gov.uk website comes up. Once it’s set up it’s a bit like a bank account. You upload money and 20% is added to it, then you pay the nursery/childminder or whatever direct from that. They have to be ofsted registered and they need to register to receive the payment as well if they haven’t already. Saves me £60-£70 per month.

I did nights and ex did days. Now I'm a single parent I work as a teaching assistant the pays crap and I have to pay for after school club but it works for now

Waited until dd1 was nearly 3 to try to conceive dd2. No way I could have afforded 2 in childcare simultaneously

8 year gap between 2 children then stopped there so no more. Dh worked nights and I worked days.

I could "afford" childcare but it was my main cost and i was pretty skint for years becausr of it.

On the bright side now i dont pay it i feel quite flush.

We struggled the first 2 years I worked after 5 years off. Things got better once Ds was at school and it was just before and after school childcare needed.

Moody123 £1000 a week? How many children is that for?

We both get childcare vouchers which helps but must admit, I haven't crunched the numbers to see how much we save by using them. Nursery bill is around £1000 a month so after vouchers it works out as around £300ish from both of our full time salaries. No family help.

We can afford it because of income and Childcare vouchers. I get £243 a month (and DH gets less as he’s a 40% tax payer so I think he get just over £100).

I worked out that childcare vouchers offered us a better deal than the new scheme. You need to calculate what your cost would be overall then calculate the cost on both schemes.

You will find nurseries that offer discount for 5 days full-time. Childminder’s details are available on council websites. My Childminder was really good value. 8-6 including all food not nappies £45 a day.

We both get childcare vouchers from work. Then we are lucky that almost every day one of us can leave work at 3 to pick up DD so although we both work full time and have an hour commute each way, she is only at the CM for 8 hours a day. We just work when she goes to bed to catch up on what we miss through leaving early.

I know a lot of people stagger their work hours to minimise the childcare hours needed.

There was a time when I had two children in nursery 3 days a week while I did 3 days a week supply teaching. Because I didn't get paid over the school holidays but still had to pay nursery fees, it worked out that I paid more out in childcare fees than I earned. Luckily this was only for a few months and I needed to keep my hand in while I looked for a permanent position, but it did make me wonder how people in lower-paid jobs can work and pay childcare.

Also, wrap-around care is more expensive than I had thought so I don't have much more money now they're school-aged.

For me,
I had to spend an afternoon playing about with the tax credit rules and a couple of different scenarios.
Weirdly, part time work (with low childcare costs and lowish tax credits) worked out as the same disposable income as full time work (with high childcare costs and enormous tax credit entitlement to cover said childcare costs).
I work as a welfare rights advisor so this was relatively easy for me but if you ask the Cab for a "better off calculation" they should be able to oblige. It would probably be Universal Credit now.
I chose the part time work.

Nanny share with a friend for one day pw, moving onto after schools when they were older.