More and more parents in the UK are facing the burden of increased childcare costs.
With the overall cost of living rising at a rapid rate, it may come as no surprise that childcare fees have followed suit, with prices up by an average of 5.6% since 2022.
The average cost of sending a child under two to nursery on a part-time basis is a staggering £148 a week. This comes in at £7,134 a year, based on 48 weeks.
The cost of sending a child to nursery full-time is even more eye-watering, at a staggering £14,836 per year.
Worryingly, 64% of parents admit that they struggle to pay the fees associated with childcare.
In addition to this, many parents are being forced into choosing between their careers and their families, with 76% of mothers stating that childcare costs meant it was no longer financially viable for them to go to work.
Feeling unable to keep up with the cost of childcare can be daunting.
However, there are a number of options to consider that may help to ease the burden.
Check to see whether you’re entitled to any additional support
The Gov.uk website offers a handy Childcare Calculator, which will show if you qualify for any financial support with your childcare costs.
30 hours free childcare
The eligibility criteria for 30 hours free childcare varies depending on where you live. You can read more about each scheme and check if you’re eligible by visiting the relevant website for your country:
Eligibility may depend on additional factors, such as your income, and whether you’re currently in receipt of any benefits.
If you meet the criteria, you could get 30 hours free childcare per week during term time (based on 38 weeks).
The hours can be redeemed with a variety of approved childcare providers, including nurseries, childminders, and even some holiday clubs. A list of approved providers can be found on the Ofsted website or on this list of childminders.
You can set up an account on the Gov.uk website and apply for 30 hours free childcare online – this should take around 20 minutes.
If your claim is approved, you’ll be sent a voucher, which you give to your chosen provider to claim your free hours.
15 hours free childcare
ALL children between the ages of 3 and 4 years old qualify for 15 hours free childcare per week, totalling 570 hours a year based on 38 weeks.
Under certain circumstances, some 2 year olds may also be eligible for this scheme.
Parents don’t need to make an application to access this help, which will be welcome news to those fed up with battling their way through long, complicated eligibility criteria and forms!
To claim your free 15 hours, you must provide your care provider with proof of your child’s age. This will enable them to apply on your behalf.
If needed, your local council should be able to provide you with further information.
Tax-Free Childcare
Tax-Free Childcare is a government-funded scheme that could offer contributions of up to £2,000 a year. This is usually paid in £500 instalments every three months.
If your child is disabled, you may be entitled to up to £4,000 a year.
You can check your eligibility for Tax-Free Childcare here.
If approved, set up an account on the Gov.uk website and make payments directly. How you choose to make payments is up to you: you can either make a one-off transaction, or multiple regular payments.
For every 80p you pay in, the government will top up your account with a further 20p.
You can withdraw funds as and when you need to pay your chosen childcare provider.
The good news is that you can claim Tax-Free Childcare alongside your free 30 and 15 hours.
If approved, you will need to confirm your details every three months to continue with the scheme. You will usually be sent a reminder letter to help you keep on top of this.
I’m really struggling to pay for childcare. What can I do?
Bringing up a child can be stressful, and that’s even before you factor in financial worries.
Some families thrive on having a parent at home every day to eliminate childcare costs. On the other hand, some parents are having to involuntarily leave their jobs simply to cut the cost of childcare.
If the thought of handing your notice in is filling you with resentment, you should first take a step back and consider your options.
Ask for a pay rise
Very few of us feel comfortable talking about money, especially when it comes to asking for a pay rise.
If money is becoming a worry and is contributing to struggles with childcare costs, it may be worth explaining your situation to your boss or HR department.
Most good employers would much rather work with a valued employee to find a solution than lose them altogether. If any of your management team have young children themselves, they are likely to understand your situation.
Work from home
Of course, anyone who has a child under four will probably grimace at the sheer thought of having to conduct a Skype meeting with the dulcet tones of Peppa Pig drifting in!
However, depending on the type of job you have, could a few days working from home help to strike the balance between staying in employment and keeping childcare costs at an affordable level?
Again, it might be idea to have a word with your employer. The worst they can say is ‘no,’ but it’s better than not knowing and always wondering.
With a little help from friends
Is there anybody in your family or friendship circle who could lend a hand with childcare, even if only for one day a week?
What’s imperative in this situation is agreeing on a schedule and setting boundaries from the offset, so everybody knows where they stand.
Grandparents and carers may be entitled to apply for Specified Adult Childcare credits. More information can be found on the Gov.uk website.
If you are really stuck and in need of financial help it may be an option to borrow money from your friends or family to cover your short-term nursery costs. If not, you could always take out a loan, some lenders will even consider people with bad credit if you needed some short term relief.
You could benefit from flexible working arrangements
If you’re working part-time and have the flexibility to pick your days, you might just be able to save yourself a bit of money.
If you can, you may choose to avoid putting your child in nursery on Mondays. Over the course of 2024, children attending nursery on a Monday in England and Wales could lose up to 5 pre-paid days of childcare due to bank holidays.
Final thoughts
Whatever you choose to do, you may take some comfort in knowing that your initial outcome doesn’t have to be final. For example, if after six months of full-time parenting you realise that it isn’t for you, then you can absolutely reassess the situation and look at getting yourself back into work.
There is no right or wrong way to approach the decision to either continue working or become a full-time parent. It’s all about trial and error, and we hope that our tips have opened up your options and help you to make an informed decision to suit you and your family.
