Childcare Costs Set to Increase

More and more of us are going back to the office and this means considering childcare costs. Balancing work from home and childcare hasn’t been easy for many of us but now there’s a new question – how expensive is childcare? You might be surprised how much it can cost you.

How much have prices have increased?

It’s no surprise that the cost of childcare costs has risen in the UK in the last year. With inflation, we’ve seen the price of most services in the UK rise. The childcare survey revealed that part-time nursery costs have risen by 4% since 2020, and for a child age 2 it has risen by 5%.

How much does childcare cost?

Everyone wants what is best for their child or children, and an attractive option, especially as the pandemic draws out, is a private Nanny. This, however, can be extortionate.

The National Childbirth Trust ballparks that a Live-In Nanny could cost you anywhere between £400-£650 per week, that’s a high of £33,800 per year! For many people that’s more than their annual salary, and that doesn’t include costs of National Insur-ance, Tax, and living expenses. This price can be unaffordable for the average Brit, so what are some other cheaper options?

A day nursery will set you back on average £263 per week, whereas a childminder can be slightly cheaper at £228 per week. These can be good options if you’re planning to go back to work full-time from being a stay-at-home parent or if you’re returning to the office.

What can you do if you can’t afford childcare?

One of the cheapest ways to go back to work full-time is to have a family member look after your child or children – however, we understand this isn’t always possible. And if you can’t afford full-time childcare, another option is to go back to work part-time, this means you only need to pay for part-time childcare.

This decision would need to be based on how much you would earn part-time working vs the costs of childcare. It can be appealing to be able to have both – work life and home life but is it financially manageable? The average cost of sending your child (under 2) to nursery part-time is £7,160 per year. Compare this to your part-time take-home wage annually to see if this option is something you can consider.

There are some options for free childcare that you could be granted depending on your personal situation. The UK government offers 15 hours free childcare, and in some cases, 30 hours free childcare, in England. To qualify you’d need to be in work, and if you have a partner, they’d need to be in work too. You can use the GOV.UK childcare calculator to see exactly what you’re entitled to.

Stay at home parenting isn’t for everyone but it could be a financially viable alternative for some. It can be an amazing experience to stay home with your children, but it involves careful planning and making sure you know which benefits you are eligible for.

Learn about Child Maintenance Debt.

Do what’s best for you

The most important thing to keep in mind whether you’re going back to work full-time, part-time, or staying at home is budget. A realistic and manageable budget that you can stick to can make all the difference in a money-tight situation.

However, that isn’t always enough. If you’re finding yourself struggling with debts, a Debt Management Plan (DMP) might be a good option for you. A DMP is an informal debt solution. It’s designed to consolidate unsecured debts into one affordable monthly payment.

One common question people have is: How does a Debt Management Plan affect credit? A Debt Management Plan will affect your credit rating in the short, medium, and long term. Only enter a DMP if you can afford to make payments on time and in full.

Need help with debts?

Dealing with debts is always difficult but when you have children you’re responsible for, it can feel suffocating.

Don’t suffer alone. We can help with financial advice and Debt Management Plans to get you back on your feet and enjoying time with your children.