Not returning to work after having a baby?

Sponge

I've been running a few scenarios through the 'entitled to' website and I have a question which I hope someone can answer.

The calculations use child care costs, so when you get the figures at the end for Total Income, does this include child care costs? Or would I still have to subtract those from it?

It's just that comparing two scenarios, one where my wife works and we need 2 days a week child care and the second where she doesn't and we don't need childcare, the difference in the total income is nearly £5000 in favour of her working.

But if the figure doesn't include childcare costs, and you then subtract that from the total, the difference drops to £2800 in favour of her working.

Bottom line, it looks like we'd be better off financially if she worked. But then you need to weigh this against the disadvantages of her not being around for our son on a full time basis.

My head hurts!

WestonDave

I'm pretty sure you would have to deduct the childcare costs.

I've thought of something else - just when you thought it couldn't get more complicated!

Its worth asking both employers if they do or will run a salary sacrifice scheme for childcare costs. What this means in English is that part of your pay is paid in vouchers redeemable at your nursery and because it is deemed to be provision of workplace childcare you aren't taxed on the voucher element so you get more money overall. There are limits and some downsides - but if both employers are willing to run the scheme you can both do it and get double the benefit.

I've done a quick search and this link Link was the first I found - its a bit long and there are probably better ones but it'll give you an idea how it works.

Sponge

Childcare vouchers are something which I was aware of, but haven't been able to incorporate them into the calculations.

My employer uses 'Busy Bees', but I'm unsure if my wife's employer does.

My wife spoke to the benefit office and they suggested using the vouchers can be a bit hit and miss. Sometimes it's best not to get them. We're hoping to make an appointment to talk face to face, hopefully sorting out the fine details.

I think we're both coming around to the idea she needs to go back to work. Probably part time. 3 days a week, Wed-Fri. That way we only need to pay for 2 days childcare, as my mum can have him on Fridays, if I'm working. (I work rolling shifts, so will be able to have him sometimes.) At least that way we don't need to pay upfront for Mondays and lose out when Bank Holidays come around.

It shocked me when the childcare centre said you still have to pay for Bank Holidays, even though they won't be open! Many people have to work them, including me, and if I pay for child care on that day I want it!

It's a bit of a minefield, isn't it?