How to afford full time childcare working full time?

downsizer3

Single mum here, working full time and my childcare is £750 - 800pm.
I've worked through the SOA and got my outgoings as tight as I can but I'm having to watch every penny.
Sadly thats the way it is with young kids - and no - I don't think you need to go into debt but it is a balancing act and sometimes it can be beneficial to just tighten the belt and have one partner working.
It can be done though! I'd recommend starting with the SOA and looking at the figures - see where you can tighten. If one of you is working - tax credits can help too.

threemuttleys

I too work long hours (35, so not quite ft) I only earn £6.30 ph, and Childminder is £4.00 per hour. I really do work for a pittance!

Its a tough one, OH and I have discussed me not going back to work after we have baby number two, as it just would not be viable (barely is now!)

FBaby

Those families (single or not) with young children whose income is just at that level where you get no or almost no tax credit for childcare are really losing out. By the time they've paid for childcare, they are usually almost inevitably worse off than those who are entitled to benefits. The system is all wrong. Where is the incentive to work hard, long hours to find yourself still needing to adhere to a very tight budget and experience the stress of getting into unmanageable debts.

The governement should do a lot more to help these families. Tax credits shouldn't be cut up so significantly when income goes up a bit. The only positive is that when your youngest will be three, you will start seeing the financial benefits, so you need to start counting the months and cope in the meantime. Hopefully, you will also have an increase in income during this time.

paulwellerfan

OP have you thought about getting a nanny or like.
as i am sure that will be cheaper.

onlyroz

FBaby wrote: »

The governement should do a lot more to help these families. Tax credits shouldn't be cut up so significantly when income goes up a bit. The only positive is that when your youngest will be three, you will start seeing the financial benefits, so you need to start counting the months and cope in the meantime. Hopefully, you will also have an increase in income during this time.

This is pretty much my view - for many families they need just a little bit of extra help to get their children through the first few years - and once their children are at school they're usually fine. However, we have bright, intelligent women giving up their careers because they can't afford the childcare, which is only needed for a relatively short amount of time.

sweaty_betty

I've heard it suggested that ALL childcare should be tax-free (that is, you get tax relief on it). That might work, however I've heard that when the childcare vouchers/15 free hours kicked in a load of nurseries put their prices up, so maybe whatever is put in place the childcare providers will try to cash in?

Fire_Fox

Maybe schooling should start a year earlier. The state/ taxpayer can't afford to support the number of people (families or no) relying on benefits or healthcare as it is, we can't afford to provide more right now.

Could you take in a lodger Katekat for a tax free income? You might even get some free babysitting if you priced it a little lower than average and were clever about who you picked. No idea how au pairs work out as value for money.

glitter_fairy

we couldnt afford it so i didnt work

onlyroz

Fire_Fox wrote: »

Maybe schooling should start a year earlier. The state/ taxpayer can't afford to support the number of people (families or no) relying on benefits or healthcare as it is, we can't afford to provide more right now.

In most cases childcare subsidies are paid for by the extra tax that the working parents are able to pay.

Spendless

This was my reason for packing in work when son was born nearly 13 years ago. With no right to request flexible working back then and my employer only employing full-time workers, I really didn't want the equivalent of my wages going in childcare fees for what I knew would be several years as we wanted a 2nd child too. We very much see wages as benefiting our household, so saying to husband he paid the bulk wasn't an option for us either. It turned out to be 7.5 years to the day from eldest being born to youngest going to f-time school, so a long time to be working f-time and not benefiting from a 2nd income. Fortunately for me I was able to find part-time weekend and evening work, only giving it up when pregnant with 2nd child.

Have you had a play about with different scenarios? Eg you mention cutting your own hours to accomodate the school run. What about having the childminder do pick ups and drop offs for eldest as well as having the baby? Or is there a breakfast and or after school club that eldest could attend?