Are you looking to start a family? Having a child is an incredible experience and a journey that you will cherish. However, it can also be a very costly process, and childcare is one of the biggest expenditures that parents face.
With the cost of living rising across the UK, what is the average cost of childcare for parents today? We thought we would take a closer look.
The average cost of childcare in the UK has increased year on year, and nowadays, recent research has shown that in 2022, the average price of over £7,000 a year for part-time childcare. However, in places such as London, it can be considerably higher than this.
For parents looking to get back to work, understanding the costs involved is essential in ensuring that they can budget accordingly.
Part-time childcare allows parents to begin their transition back to full-time work while still being able to spend time at home. The average costs for part-time childcare of up to 35 hours are:
For parents looking for full-time care for their child, which is up to 50 hours a week, the costs of childcare are:
The use of after school clubs allows parents to continue working full hours while also giving children the chance to pursue an array of new experiences. Whether it is art, sport or music, it allows school-aged children to enjoy the additional time with friends and teachers, and on average after school clubs cost £62.56 a week.
The cost of childcare is a major problem facing parents, but there are ways to reduce the financial impact it has on families. The government's Tax Free Childcare Scheme has been created to help parents with their finances by providing up to £500 every three months for each child.
This money can then be used to pay for approved child care such as childminders, nurseries, nannies, after school clubs and play schemes. Your childcare provider must be registered for the scheme in order for you to be able to take advantage of the benefits. Eligibility for the scheme depends on your employment status and income, and the age of your child. Full information can be found on the UK government website.
If you want to work out how much you could be saving through the Tax Free Childcare Scheme, then our free calculator will help you quickly understand how much you will need to pay to top up your account.
Are you struggling with the rising cost of living? These ever-increasing expenses are placing a lot of pressure on families across the country, but did you know that you could be saving up to £2,000 a year?
The Government-backed Tax Free Childcare Scheme is a unique opportunity for parents of young children to get support with their childcare, but what are the benefits? We thought we would take a closer look.
The Tax Free Childcare Scheme is open to all parents in the UK and is designed to help them save £500 every three months up to £2,000 a year. Parents simply need to open a Tax Free Childcare account, and for every 80 pence that they deposit, the government will add 20 pence, essentially giving them back their basic-rate tax, hence the name!
This means that eligible parents can use the additional funding for their childcare provider. However, in order to do so, that provider must be an approved and registered childminder, nanny, playscheme, nursery, or school.
There is a huge array of benefits to opening a Tax Free Childcare account, including:
The biggest benefit of using the Tax Free Childcare Scheme is that it can help to reduce the costs that you face. Eligible parents will be able to get up to £500 every three months per child. This does not mean that the additional £500 needs to be spent within that time frame; they can use the additional extra from the government whenever required.
Another benefit of the Tax Free Childcare Scheme is that it is open to all parents in work, even those who are self-employed. Typically, if you have a partner, then you will both need to be employed in order to qualify, but there are some circumstances where you could be eligible if you are not working:
Although most parents commonly use the scheme to help them with their childcare for toddlers, the scheme is actually open to all parents with children under the age of 11. For parents of children with disabilities, then the scheme will continue until they are 16.
If you are looking to find out more about the Tax Free Childcare Scheme but are not sure how much you need to deposit in order to cover your fees, then our free calculator is here to help you. Simply enter how much you need to pay, and our Tax Free Childare Calculator will do the rest for you!