Childcare costs have skyrocketed, placing families under immense financial strain. With the average annual cost of sending a child under two to nursery full-time reaching a staggering £14,030.
It’s no wonder many parents are grappling with the dilemma of whether they can actually afford kids!
Parents are rading their savings, resorting to credit cards, and even borrowing from friends and family to cover childcare expenses.It’s no wonder that 70% of mothers don’t think it’s financially worth going back to work.
A Personal Perspective
This financial conundrum is not lost on many parents, including me. Despite dedicating years to my career, the financial equation of returning to work after having a child left me at a loss.
I was self-employed so traditional childcare vouchers weren’t an option, leaving us without any help from the government. It was soul destroying because it felt like I was working for nothing.
However, when my eldest turned two, the Tax-Free Childcare scheme became a lifeline. This initiative, which more people need to be aware of, involves transferring money into an account that the government boosts by 20%.
For my family, it was a game-changer, slashing childcare costs from over £1000 to approximately £850 per month. The scheme covers expenses for both nurseries and childminders.
Tax-Free Childcare
One notable advantage of this scheme is its compatibility with your free childcare hours, offering parents a financial solution for after-school and holiday clubs as their children grow older. If you want to know if you’re eligible, the government’s website provides a clear overview of the options available.
A Glimmer of Hope for Future Parents
If you’re thinking about getting pregnant, there’s promising news on the horizon. Thanks to the relentless efforts of organisations like Pregnant Then Screwed, the government has acknowledged the need for better childcare support.
Starting from April 2024, eligible working parents of two-year-olds can access 15 hours of free childcare support, with plans to extend this to parents of children aged nine months to three years by September.
The government is ‘hoping’ to grant all eligible working parents with children aged nine months and older access to 30 hours of childcare per week by September 2025. But don’t assume it’s guaranteed until it officially lands on the website.
Embracing Parenthood
Being a parent is amazing (and hard at times!) But it feels like childcare support is moving in the right direction. In the meantime, try and stick to your budgets and explore all of your childcare help options. Let’s hope that 2025 brings some much needed help to parents across the UK.
