Child Care is costing us the equivelent of a mortgage!

Dynamax

Hi There

Our son is 8 months old and is just about to start Nursery full-time as Mum is returning to work.

I'm staggered at the cost of child-care and have just been informed by Child Tax Credits that we don't qualify for any help towards our childcare costs.

We both Work Full time, Mum earning £20k and Dad earning 24k

Our mortage is £850 per month and the Childcare costs are coming in at £620 per month! It's ridiculiously expensive.

Even more frustrating is the fact that others we know who choose not to work (or work a minimum of 16hrs each) get the majority of their child care costs paid and also recieving housing benefit! Spoungers!

For christs sake, if the government paid my childcare, I could purchase a 2 bedroom flat for these people and easily cover the mortgage with £620!

Angry and frustrated!!

I suppose short term it's our fault for striving to make a better future for our Son, hopefully long term things will improve, but for the next 4 years, until the free schooling starts, we really are going to have to tighten our spends.

ddebski_us

I feel your pain - our mortgage is £970pcm and full time nursery has been quoted as £1280pcm!!!

We're looking into childminders which seem to work out a bit cheaper....

xDX

onlyroz

If you don't qualify for tax credits (and I am surprised about this - I thought the threshold was around £60k joint income) then you will be able to get child-care vouchers. If both you and your wife get the full amount (£243 a month) then this is equivalent to around £100 a month saving.

Also, when your child turns 3 you will qualify for the government early years subsidy. Not sure how much it is now, but when my son was 3 it worked out at around £150 a month.

I think it's worth "struggling" through these few years, so that you can both maintain your careers.

For the record, our mortgage is £600 a month and our childcare bill is around £1200 a month...

Al1x

its difficult isn't it. I remember working out that we would be better off if we both didn't work but what kind of example would that have set for our children.

when your son is 3 you should get 15 hours free childcare (if the government is still doing it then)

pinkclouds

Childcare *should* be expensive. Would you really trust the most precious thing in your life to someone earning £1 per hour??

I guess you're just posting to vent (and I hope it makes you feel better) but have you already considered/discounted part-time or flexi-time hours for mom, nearby relatives, etc...?

onlyroz

pinkclouds wrote: »

Childcare *should* be expensive. Would you really trust the most precious thing in your life to someone earning £1 per hour??

I agree, but I also think that the government should be doing more to help "middle income" families stay in work. It does make me sad when I hear about women who *want* to return to work but decide that it makes better financial sense to stay at home and live off benefits.

As an example, a typical new graduate, aged say 22-25, might be earning £20-25k a year - this is exactly the sort of person that we want in work, paying income tax and contributing towards the economy. However, it is people on exactly these sorts of salaries who are finding that they won't be able to afford the child-care bill if they choose to return to work after maternity leave. We should be doing everything humanly possible to encourage such people to stay in work.

melb

why would it set a bad example if one of the parents doesn't work? I think it sets an example that the child's welfare is paramount and that no nursery can ever do as good a job of bringing up your child and also tells the child that you enjoy spending time with them and that is why you had a child. Also to the original poster i assume that if people are receiving housing benefit it is because they are on low wages.

Dynamax

Yes venting my anger is the main reason for this thread. We have both agreed that the Nursery route is the best option for our little boy and we would pay whatever the costs. It just really gets my back up.

Family/Grand parents maybe able to relieve us for one day a week, but currently they all work full time, this may change in the coming months.

We have looked at cheaper alternatives, but believe me, the qualities / Standards / First Impressions sought between a Nursery at one end of the town charging £420 per month to one charging £620 per month are beyond belief. You certainly get what you pay for.

Onlyroz your point about the middle income families and the lack of Government support typifies this thread.

DaisyFlower

melb wrote: »

tells the child that you enjoy spending time with them and that is why you had a child.

Ouch to all working parents out there. Dont worry, I can assue you that their children were wanted and they are now working to ensure they can feed and clothe their child.

DaisyFlower

onlyroz wrote: »

If you don't qualify for tax credits (and I am surprised about this - I thought the threshold was around £60k joint income) then you will be able to get child-care vouchers. If both you and your wife get the full amount (£243 a month) then this is equivalent to around £100 a month saving.

Also, when your child turns 3 you will qualify for the government early years subsidy. Not sure how much it is now, but when my son was 3 it worked out at around £150 a month.

I think it's worth "struggling" through these few years, so that you can both maintain your careers.

For the record, our mortgage is £600 a month and our childcare bill is around £1200 a month...

After about £25k, tax credits rarely help with childcosts costs if just one child.

What would be better would be to abolish tax credits in their current form and either raise the tax threashold for everyone or to make nurseries free to those who work. Far simpler to raise the tax threashold, less errors and fraud and working would pay then.

Dynamax

"Also to the original poster i assume that if people are receiving housing benefit it is because they are on low wages. "

In some cases possibly, but in the cases I know of they recieve housing benefit because both parents reduced their hours to work 16hrs per week, therefore getting more benefits.

And to your point about setting a bad example if one of the parents don't work. I don't believe it sets a bad example, I believe those times are over, we are in the 21st century and middle class familys cannot afford for both parents not to have a monthly income.
We are a young couple trying to make a good future for our son, we would not be able to do that on the Dad's income of 24k.