Help with childcare fees and tax credits for larger families

lap1970

Hi there - just wondering if anyone can give any advice. My husband has been offered a job for the first time in years. I have just returned to work full time after maternity leave. We have 5 children and he was staying at home with them. We looked into the cost of childcare for 3 of them being under 4 one for before and after school and the oldest is at high school so doesn't need the childcare. I couldn't believe it when we were told it would cost £665 per week - that is over £2,500 per month which is more than both our take home salaries. I am receiving about £300 per month more than normal from tax credits due to my decrease in salary over the past 10 months but that in itself is only just enough to pay the rent and council tax and we wouldn't have enough money to even get into work. I called the tax credits helpline asking if they could tell us how much we may get towards the childcare but there weren't very helpful because they said it too near the end of the tax year and because we had already been paid extra because my reduced income was taken into account, we may not get any if much extra towards the childcare. I can't believe we would be about £700 a month worse off when working because the tax credits you can only claim for 2 children and I think the maximum amount is £300 per week. Has anyone had a larger family out there and managed to work and at least break even with the child care fees rather than live off benefits? We wouldn't mind even if all the money he was earning went to the childcare fees because at least taking this job will give him a current work reference and it is only temporary for 6 months, plus we have a child starting school after the summer holidays and another would qualify for the pre-school funding at this time also.

[Deleted User]

The most anyone would ever get towards childcare costs is £210 p/wk.

http://www.hmrc.gov.uk/rates/taxcredits.htm

The £210 is 70% of the maximum £300 p/wk limit.

Oldernotwiser

At that price, might it not be worthwhile employing a nanny?

[Deleted User]

I think if you choose to have such a large family then it dosent make sense for both parents to work if you have to pay for childcare. My friends found themselves in this situation when baby number 3 turned out to be twins. It is not feasible for her to return to work until the children are all in School.
Luckily her Husband has his own business so they don't have to claim benefits either.

BigAunty

Are those charges with a nursery or a child minder?

DaisyFlower

Given the cost of childcare, it would make more sense to work different hours so that you can cover childcare betweem you. It may mean shifts but lots do it.

As an aside,surely you would factor in childcare costs when planning a large family just as you would the cost of food, clothes etc.

lap1970

Thanks for the responses. Yes it is for a day nursery as I can't find a child minder with enough spaces. As far as planning for childcare costs unfortunately in life people's circumstances change despite your best plans. Grandparents that were able to help die and if you have no family you are left in the situation that we are in. We have been trying to get jobs that are more flexible with working hours but this is the first one that came along after an interview for a job with more suitable hours where we wouldn't have needed the childcare at all. It is just if you have been out of work a long time and keep getting turned down at interviews it is soul destroying to have to turn a job down when you have been offered it.

xylophone

Might it be cheaper to employ a daily nanny? I was looking at this http://www.nanny-nanny.co.uk/nanny-pay-salary.htm