Thinking about whether you or your partner will be going back to work after having a baby is a big decision. A huge factor in this can be how much childcare is going to cost. What you choose needs to suit your individual situation and your budget.
There are lots of options for childcare out there, here are some of the most popular. If you're in work, find out if you have an employee assistance programme (EAP) that can help you find the arrangement that works best for you and your child.
Children can go to a nursery full or part time from birth until they start school or turn five. At a nursery your child will have the opportunity to interact with other children, helping them develop social skills.
Childminders can take care of up to six children under the age of eight in their own home. They have to be registered (see below). A childminder provides tailored care and can often be flexible about when you pick up or drop off your child.
TIP: Find out if you have an employee assistance programme (EAP) that can help you find the childcare arrangement that works best for you.
A nanny will look after your child or children in your own home. They can either live in or live out, depending on what suits your situation. The hours vary and it can be a flexible option, providing one-to-one care. If you choose to hire a nanny you’re considered their employer so you’ll need to arrange to pay tax and National Insurance.
An au pair is a person aged 18–30 on a cultural exchange programme. They live with you and your family in return for board, lodging and a small allowance, and provide childcare and some help around the house. They’re an unqualified child carer so, for example, they’re not allowed to have sole responsibility of children younger than two. If you think an au pair might be right for your family, go to the British Au Pair Agencies Association to find a registered one.
This could include sharing childcare with a friend or getting grandparents to help out. If your child's grandparents take care of your child and are of working age, they should look into applying for working tax credits and National Insurance credits. Whether you decide to share with a friend or get help from grandparents, it’s just as important to be clear on things like hours of care, food and safety as you would if your child was going to a childminder or nursery.
When considering what works best for you, there are a few things to look into
- By no means last on the list is the cost – does it fit your budget?
- Is the childminder or nursery registered? You can find them through Ofsted (England), the Care Inspectorate (Scotland), Care and Social Services Inspectorate Wales (Wales), and Family Support NI (Northern Ireland).
- Visit the childcare provider and chat to the people looking after your child. Make sure you’re comfortable and they feel like a good fit for you and your child.
- What’s included in the fees? Do they include things like meals, nappies and milk, or will you have to supply this? Are there any additional costs, for example for trips out?
- Are they open all year or just over school term times? You’ll need to consider this to make alternate childcare arrangements during holiday times, which may cost extra.
- Are the care times suitable for you? Do they fit around your work hours and is the location suitable for you to get to or from work in time?
- Are you happy with the number of children being cared for or the group size? For example, the staff-to-child ratio in a nursery is three children to one carer.
- Do your working hours, location or other commitments mean you need a lot of flexibility?
TIP: Check if you or your partner is eligible for childcare vouchers or working tax credit to help you cover the cost of childcare.
Childcare can be expensive. You’ll need to weigh this up against your earnings to see what’s affordable. Look into whether you’re entitled to financial help, as this may allow you to widen your options.
This is where your employer pays a set amount (dependent on your tax bracket) directly to your childcare provider. You won’t have to pay tax for national insurance up to a certain amount.
You and your partner may be entitled to Childcare Vouchers. A portion of your salary gets paid directly to the childcare provider, giving you a tax saving. Your chosen childcare provider will need to be registered to accept childcare vouchers.
If you work for at least 16 hours a week and pay for registered childcare you can apply for Working Tax Credit. There’s a childcare element to this, which, if you’re eligible, can cover up to 70% of your childcare costs.
Tax-free childcare scheme
This scheme gives you 20% of your yearly childcare costs, paid for by the government. It's available for children under the age of 12, or under 17 for disabled children, with the youngest children getting into the scheme first.
Free early-years childcare
All three and four year olds in the UK are entitled to some free early education or childcare. What hours you’re entitled to depend on where you live.