Confused about 30 hours for 9mth - 2yo

[Mumoftwosweetboys]

I'm a bit confused about some of the details of the new budget announcement and 30 hours free childcare.

I have a 3 year old who benefits from 15 hours free a week. We're not eligible for 30 hours free because one of us earns over £100k.

It's not clear to me whether we will benefit from 15 hours, 30 hours or no hours for our younger child when he starts childcare. The budget document talks about eligibility being the same criteria which makes me think we would not be eligible for 30 hours (due to salary) but it doesn't mention anything about all parents being eligible for the 15 hours. Seems like an oversight! Or maybe more details to follow. Has anyone seen the answer to this.

Also how annoying that it's only being phased in from April next year. What about parents who need that NOW!

My baby is going to be starting nursery in May when he's 11 months old so it's annoying we can't benefit from the new rules from then (if we're even eligible), especially as we'll have two in nursery at the same time!!! Seems like only 2 year olds will benefit from next April.

I was always taught if its not helpful or kind don't say it. but clearly others don't get that message.

You just made me chat with my husband. Apparently after the announcement yesterday he talked to HR at his firm and they said it's fine to start adding in extra to his pension if/when he meets that threshold. its a very common thing to do. also good investment for his future cos currently his pension is a bit pathetic looking (esp compared to my public sector one lol).

Total bollocks

@Bells3032 that's a very sensible shout re pension contributions.

@GrasstrackGirl bore off. I have a perfectly good grip thanks.

No you don't.

OK. If that helps you sleep better at night.

I would expect changes like this to start in September as that's the start of the school year. Childcare providers need time to sort out feasibility so it was never going to be immediate.

This is a carrot so that people vote Tory in the general election. No idea if Labour support this initiative but details should appear closer to the time.

Very good point re this being a carrot and the timings

Hi, could someone point me to what you are all reading to find these details. I’ve got a 14 month old and am expecting another in September, trying to work out how it will affect me. Neither of us earn anywhere even remotely close to 100k either, but both work, so just interested in what the government have actually committed to. Thanks in advance :£

Oops - meant to be a smiley, but £ probably more appropriate here.

As should everyone, tbh, given the proposed timeline.

I'd be surprised if all the details have been finalised. It sounds like a good deal ....until you think about whether a) there are enough nursery places and staff to facilitate it and b) the numbers they worked on are actually viable for nurseries.

At the moment they allocate iirc around £5/hour for the funded hours, but for a lot (maybe most) nurseries this doesn't adequately reflect their costs and they need to make up the shortfall. Its sounds generous to offer more free hours to parents but how does that play put if nurseries can't function on the money that is allocated?

I don't have young children or work for/own a nursery so no skin in the game but it seems frustrating from either side and possibly too good to be true

Will it be 15 hours universal for babies or will it be means tested? I don't think we know at this stage.

It is care, not education, for children under age 2, so it could be means tested.
The roll out is over several years, so I think this is only relevant to children not yet born.
For a baby today, nothing changes, until September 2024 earliest.
I think we need to wait for the policy detail, plus will any childcare providers actually provide the funded hours? That is uncertain, as funding level needs to cover costs and make a small profit.

OP I don’t think it was so much the question you asked as how you asked it, I’m sure it wasn’t intended to come across as grabby but it rather does!

With all policies however there will be some who win and some who don’t, the challenge for policy makers is to ensure that those who win are those who need it most, and that the level is set sufficiently high that those who don’t are not unduly disadvantaged relative to their needs. If you’re on a salary like that and managing with payments then it’s not going to be tremendously detrimental to you if you don’t receive these hours now.

The objective of this policy is to encourage more people to work, and for current workers to work more, in order to overcome the crazy situation whereby nursery fees can cost more than one partner’s income. It’s not really to provide extra income to parents who are managing fine based on the choices they’ve made right now (no matter how much your mortgage is). If the intention were just to hand out some free money I think we’d all like to see it used more widely… it’s specifically targeted at increasing labour force participation.

With regards to implementation, it makes sense to do slowly as the childcare sector needs to adjust for the changes, that can’t happen overnight just so people can get some free hours NOW. I think phasing in is sensible and ensures greater long term success / stability.

With regards to the pension contributions, it’s a good way of lowering the amount that you receive. To be honest it’s not one that sits hugely well with me as it’s clearly playing the system to your advantage when you don’t necessarily need to (particularly as you’ll also get tax relief on the extra pension contributions) but if that’s what the rules allow you to do then it’s there for the taking.

Well I'm not going to be able to sleep at night now. Someone on mumsnet doesn't agree with my husband adding more into his pension 😭

It's not playing the system. It's sensible. You think these new pension policies haven't come about so the state pension can be scrapped all together at some stage? EVERYONE should be adding as much to their pension as they can afford imo.

OPs post was not grabby. As several posts have pointed out if you live in London 100k really doesn't go far. We're hardly millionaires.

I wouldn't waste too much energy thinking about it as it's not due to be implemented until September 2025, long after the next General Election.

I think the 3-4 universal 15 hours is still the same. The extra 15 for working parents is more childcare than education and there is currently an early education offer for low income families with 2 year olds who don't work etc which is education rather than childcare.

OP there is eligibility just like the current 30 hours offer so you won't qualify I don't think.

@Bells3032 we are in a similar position. DHs salary is more around the £85,000 mark but we also have income from a property which is let out - we don’t make a profit on this, however - and his bonus just takes him over the £100,000 mark. Problem is, it’s ME who pays for nursery and I only earn £27,000!

Well that's a silly family budgeting problem there's no way you should be paying all of the childcare especially on earnings like that. Everything should be split, including earnings.

The universal element is staying the same, just for 3 and 4 year olds.

The rest is subject to the same eligibility criteria as the current extended 15 hours for 3 and 4 year olds.

‘silly’ 😂

I don’t get the problem with this. Just switch to DH paying nursery instead or pool your money so it comes from you both?

I think that's probably right. I also think they could have been a bit clearer on that (unless I'm just being dim!)

@Overthebow at the risk of sounding a lot more acerbic than I mean to (and if I was talking to you then honestly this would be said in a really friendly and pleasant sort of tone, so please read it like that!) there are good reasons why we work our finances like this and we’re both fine with the arrangement.