Help with child care costs

A question about : Help with child care costs

I've been minding my grandson for 3 days whilst my DiL works part time but it has become difficult for me to continue. He qualifies for 15 hrs day care but this only covers 1 1/12 days so they have to pay for the other 1 1/2 days. This works out at Ј290 pm. Son earns Ј51000 gross ( so has reduced child benefit) and DiL earns Ј10000 gross. Not sure what either of their take home pay is. Mortgage is Ј1000 pm plus all the other utilities etc. So, not much left to play around with. Neither of their employers run child care voucher scheme and my son says he earns too much for tax credits. Is he correct? And if so, is there any other child care help they are entitled to?

Best answers:

• Based on what you have said, their take home pay would be approx Ј3800 per month (lower if repaying student loans or into a pension).
  How many hours is the child in childcare each day if 15 hours is only a day and a half? That would suggest he goes 10hrs per day?
  If that is the only child then yes income is too high for tax credits. The limit is around Ј41,000 for one child in childcare. As he is already getting the 15 hours free I can't think of any other available help.
  They should still be getting approx Ј80 per month in child benefit (compared to full amount Ј88).
• Has the husband thought about increasing his pension contributions?
  https://www.theguardian.com/money/201...higher-earners
• He is a higher rate tax payer
  https://www.hl.co.uk/pensions/interac...ief-calculator
  He becomes eligible for full CB and benefits from higher rate tax relief.
  https://monevator.com/how-to-keep-chi...retire-richer/
  And of course.......https://forums.moneysavingexpert.com/...ns+tax+credits
• They have an 8 month old baby too, who will also go to day care soon, so the fees will double for a while. Although 3 yr old only attends from 9-5, the nursery is open 7.30-6 so the day is classed as 10 1/12 hrs. Seems unfair but that's their policy and no way around it. Yes they do have high outgoings. Apart from mortgage and other utilities, they both need cars for work. Oh well, bite the bullet.
• Do either of their employers do childcare vouchers where you sacrifice part of your salary and get vouchers instead thereby reducing the amount of tax you pay? They would at least then save something (oh no only on his as she doesn't earn enough to pay tax anyway).
• https://www.gov.uk/government/news/t...ts-should-know
  Is the above of interest?
• Sounds to me like they are trying to guilt-trip you into providing free child care. If they can't afford to pay for it heaven help the rest of us (who are on way less than that). They are earning way over average earnings and should be feeling guilty for using you!
• We have very similar income levels, but we don't have the net salary that's been mentioned (I wish!!) because my husband has a company car and that and other 'benefits in kind' give him a negative tax code, so please don't assume that someone who has a wage that looks good on paper is 'well off', it's not necessarily the case.
  Even with a cheaper mortgage, which we have due to buying some years ago and living in the North, we've still paid out Ј1000s to upgrade the kitchen, re-wire the house, have pipes laid to a gas fire, replace windows (the previous owner had lived here since the 1930s and had done nothing to the property)
  It is unfortunate that childcare vouchers aren't offerred as this would reduce the couples childcare costs.
  Is looking for a childminder so you are only paying for the hours used a cheaper option?
• It actually sounds like your son and daughter-in-law are in a pretty good financial position regarding income level against mortgage costs etc. What isn't clear is where the rest of their income is going? Maybe they need to evaluate their expenditure a little and bring it into line with their family situation. The Debt-free wannabee board is a great place to get advice on reducing monthly expenditure.