Financing Childcare
How much does childcare cost?
The costs of childcare vary widely. There is some childcare that's available for free for three and four year olds by the government, but childcare can cost up to as much as four hundred pounds a week for the most expensive private nurseries. Then there's a big range in between. Perhaps the most important headline cost is about a hundred and fifty pounds a week for Nursery Place, but things like an afterschool club is seven to ten pounds a day and a nanny can be up to three hundred pounds a week.
What should I expect to pay for a nursery?
The cost for a week in a nursery for a child under two is currently 152 pounds. For children between two and five, it's slightly cheaper, at about 140 pounds. That's an average, but there's quite a wide range. Some private nurseries can be up to 4 pounds a week, and in the state sector, or where children are three or four, getting some part time help, nursery places can be free.
What should I expect to pay for a childminder?
There are regional variations in the price of a childminder, but currently, the average cost is about 140 pounds a week for full-time childminding.
What should I expect to pay for a nanny?
The average cost for a week for a nanny who lives in is two hundred sixty pounds a week. For a nanny who lives out this is about three hundred pounds a week. These costs would be increased by about twenty-five percent in the London area.
Do I have to pay for childcare while I am on holiday?
Its quite usual to pay for childcare when you're on holiday because the childcare service or the child carer can't easily take another child whilst you're away. But, the arrangements around this will be covered in contract you need to agree with your childcarer.
Can I ask my employers to help pay for my childcare?
It's certainly worth asking your employers if they can help with the cost of your childcare. There are now special arrangements whereby employer support is exempt of tax and national insurance typically through a childcare voucher scheme. Your employer also stands to make a savings on national insurance. So, if your employer has a scheme, it's certainly worth using it; and if your employer doesn't, it's certainly worth asking them to consider setting one up.
Is there any help from the government with the cost of childcare?
There are a number of forms of support with childcare that the government provide. Perhaps the most important one is the tax credit scheme that can provide up to 80% of your childcare cost, depending on your circumstances. There are also a number of initiatives related to parents entering training or employment for the first time, perhaps having been out of work. Also, if you're a student-parent in the further education or higher education sector there are particular forms of support available for you. The government can also provide some assistance with care during the child's third and fourth year where there are part-time, free places available nurseries, and sometimes in school nurseries.
Is there any free childcare available?
The most important free childcare that is available is for children who are three and four. The government now ensures that children can have two and a half hours a day free childcare, and this is for 38 weeks a year, usually covering the main term times. There are a number of other situations when childcare can be provided free: perhaps when parents are taking up training or work for the first time, and it's being supported through the New Deal program or through other local initiatives. Of course, don't forget that maybe the most accessible free childcare may be that provided through friends or family.
