How to Choose Childcare: Options for Working Parents
If you’re looking to return to work after maternity, the options can feel like a bit of a minefield. Besides wondering which type of childcare provider would be best for your circumstances, there’s the nagging guilt and worry over whether your child will be safe, happy, and secure in whichever setting you choose.
The cost will likely be a factor too unless you can get some informal support from family or friends. Read on to find out more about childcare options for working parents, and what you may be looking at from a financial point of view.
What Childcare Options Are Available in the UK?
1. Childminder. If you would rather have a more one-to-one approach but don’t want the responsibility of hiring a nanny, finding a reputable childminder is a great option for caring for your baby or toddler. While the childminder may also look after other children, day-care takes place within the childminder’s own setting which can become a familiar, homely place for your child.
A childminder is self-employed and must be Ofsted registered to look after a child under the age of 8. If looking after children before they reach the end of their reception year at school, they must also be on the Early Years register for the Early Years Foundation Stage (EYFS) of learning.
2. Nanny. If you’d rather your baby/toddler stayed in their own home, hiring a nanny could be an option. Their job is to manage the physical, social, emotional, and intellectual aspects of caring for your child and his/her development.
A nanny does not have to register with Ofsted, though they can choose to do so voluntarily. When hiring a nanny, you also become responsible for them as their employer. This means you must abide by employment legislation including the right to work, managing PAYE tax, NI, and pension. Read more about your responsibilities as an employer if this is something you’d like to consider.
3. Au Pair. An Au Pair is usually a younger person from overseas who will live in the same house as you in return for ‘pocket money’ and can work out cheaper than paying a childminder or nursery fees. They’re not classed as an employee as long as the arrangements meet certain criteria as outlined on www.gov.uk.
They’ll expect to look after your child and perform light household duties, but they may not have any formal training or experience. In this case, an au pair may be a better option if your child is of preschool age rather than under 2. Babycentre.co.uk has a more in-depth article on the pros and cons of au pairs.
4. Day Nursery. A day nursery looks after children from birth to the age of four or five years. As with a childminder, nurseries must be registered with Ofsted (or if in Scotland, Wales, or Northern Ireland, with their relevant authority). They must also follow a curriculum to help with your child’s learning and development. This might be an option for you if you want your child to have consistency before attending primary school.
Many nurseries are open from 7 am to 7 pm, which could work well for you if you work full time and need to allow for commuting.
5. Preschool. Depending on the setting, your child can attend a preschool (may also be referred to as nursery school) from the age of 2,3, or 4. Preschools are usually run by volunteers/charities and only run for a few hours a day; mornings, afternoons, or to match school hours. All children aged 3 and 4 get 15 hours of free childcare which you can use towards preschool fees.
As with nannies, childminders, and day nurseries, preschools are required to be Ofsted registered. They may also be connected to your local primary school, so with the Early Years Foundation Stage framework, this can be a great stepping stone to starting school.
6. Family. For a more informal approach, and if you have someone you can rely on for regular support, you might consider a parent or other relative to help with childcare. However, if this isn’t an option for you, read on to find out what financial help is available to assist you.
How Much Does Childcare Cost?
According to daynurseries.co.uk, the average cost for a part-time nursery place for a child under two is £137.69 per week, compared to a weekly average of £118.34 with a childminder. A nanny would cost around £250 - £400 part-time (plus National Insurance Contributions), while the going rate of “pocket money” for an Au Pair is at least £90 per week.
For full-time hours, the weekly average for a nursery place for a child under two is £263.81, or £227.79 with a childminder. If you’d rather employ a nanny full-time, you’d be looking at a cost of between £400 - £650 per week.
If you opted to return to work and place your child in preschool, you would be looking at fees ranging from £5 - £15 a session (usually 2-3 hours spread over a morning or an afternoon). You may also need before and after-school childcare. The average weekly cost for after school club is £62.13, and of course, there are holiday childcare costs, too, if your childcare setting is closed during term time.
Help with Childcare Costs for Working Parents
As mentioned above, there are a few options to help with childcare costs, to help parents get back into the workplace. From tax-free childcare to 15- or 30-hours’ funding, here are some options which could help.
Tax-Free Childcare
All employed and self-employed working parents are eligible for Tax-Free Childcare support, provided they earn a minimum of £140 per week and — if you have a partner — both of you are working. The UK Government-backed scheme provides up to £2,000 per year towards the cost of childcare for each child.
To get started, you need to open a Tax-Free Childcare account, and then for every 80p you pay into your account, the Government adds 20p. It effectively means that you pay 80% of your childcare costs, and the government tops up the remaining 20%. If your childcare bill is £600 per month, you deposit £480, and the Government tops it up with the remaining £120. You can then use this account to pay your childcare provider.
There is a cap of £500 every 3 months on top-ups (£166.67 per month), which means if your monthly childcare bill is more than £833, the government won’t contribute any more than 20% (£166.67) of that cost. Basically, anything higher won’t qualify for help with costs and will be down to you to cover it. For more information on this, please see the full details at Money Saving Expert.
Free Childcare for 2-Year-Olds
If you are receiving any kind of income support or benefits, you may be eligible for 15 hours of free childcare per week, up to a maximum of 570 hours per year. You can use these hours with one or more childcare providers, including up to 38 weeks in an early years’ education setting. Read more about this at childcarechoices.gov.uk.
Free Childcare for 3- and 4-Year-Olds
When your child reaches pre-school age, all families are eligible for 15 hours of free childcare per week, or early education for 38 weeks. The maximum allowance is 570 hours per year and can be used with more than one childcare provider. This is great if you only work a few hours a week and can greatly help with childcare costs.
If you (and your partner if you have one) are working and (both) earning an average of £142 a week, you may be able to get 30 hours of free childcare per week during term time (38 weeks of the year). If you or your partner expect to earn more than £100,000 a year individually you won’t be eligible.
You must have a code for your childcare provider by the end of the month before the start of a new term to qualify for the 30 hours. For more information and to apply, visit www.gov.uk/30-hours-free-childcare.
How to Choose Your Childcare Option
The above information should provide you with a good foundation when deciding which childcare option would be best for you. Consider what kind of setting you feel your child would benefit from based on your circumstances, together with the cost implications and any help you may be eligible for. Above all, do plenty of research into the options outlined here.
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