Childcare Costs
If you are lucky enough to have your child’s grandparents living locally, they may be willing to help out with some of your childcare needs. But for most parents, returning to work after the birth of a child will have some financial implications.
Figures from the Daycare Trust show you can pay on average £156 a week for a childminder to look after your child up to age 2 in their home while you are out at work. This shoots up to £250-400 a week if you have a nanny in your own home.
Day nurseries for the under-fives cost an average £167 per week.
Government website www.surestart.gov.uk has advice on different types of childcare.
To find childcare providers, try www.childcarelink.gov.uk.
Many employers offer childcare vouchers, which can save you money as they are deducted from your gross salary, leaving less in the pot for you to pay tax and National Insurance on. Each parent can buy vouchers up to £243 a month, which are accepted by a wide range of Ofsted-registered childcare providers.
The vouchers are worth proportionately more to higher-rate taxpayers, as they are saving tax at 40% rather than 20%. Vouchers are available from a range of providers, and which one you use will depend on your employer’s scheme.
The Prime Minister has recently expressed a wish to scrap the voucher scheme and use the money saved to fund free nursery places for two-year-olds from poorer families. However, this is not yet certain, so you should make the most of the benefits available while you can.
View other relevant articles here, giving more information on Education Costs and Children's Savings Plans.
