Childcare is a huge expense for many families, and finding ways to reduce these costs can make a big difference to your budget. It can often feel like there is no alternative to the ever-increasing childcare costs, but there are various options and schemes available to help parents manage childcare expenses.
Here are six effective strategies to cut childcare costs while still ensuring your little one is well looked after and cared for.
Make Use of Tax-Free Childcare Schemes
One of the most valuable resources for parents trying to minimise childcare costs is the Tax-Free Childcare scheme. With Tax-Free Childcare, for every £8 you pay into your childcare account, the government contributes an extra £2, effectively providing a 20% top-up on your childcare costs. This top-up might not seem like loads, but it can make a huge difference in your monthly budget.
To qualify for this scheme, parents must meet certain criteria, such as earning below a certain amount and having children under a specific age. Head here to learn more and check if you’re eligible for tax-free childcare.
Use Your 30 Hours of Free Childcare
If your child is aged 3 to 4, you may be eligible for 30 hours of free childcare per week under the government's initiative. Currently, all 3 and 4-year-olds are entitled to free nursery education for 15 hours a week, 38 weeks a year. If both parents earn at least the equivalent of 16 hours of work at national living wage per week, this doubles to 30 hours per week of free childcare.
However, this funding is set to extend further in 2024. From April 2024, parents with 2-year-olds, who are in work, will get 15 hours of free childcare per week.
In September of 2024, the eligibility for these 15 hours will be extended to parents with children over the age of 9 months.
One year later, in September 2025, the amount of free childcare available to parents in these eligible groups will double to 30 hours per week. This is the final stage of the extension of funded childcare. Head here for more information on free childcare and to find out what you’re eligible to.
Research Nurseries Early
When it comes to finding affordable childcare, not all nurseries are created equal. Some nurseries offer more competitive rates, but these are often in high demand and have long waiting lists. To ensure you secure a spot in an affordable nursery, start your research well in advance.
Visit different nurseries, ask for recommendations from other parents, and carefully evaluate each option to find which will be the most cost-effective and best for your family. Remember that quality of care is the most important thing, so it's essential to find a nursery that balances affordability with providing a safe and stimulating environment for your child.
Speak to Your Employer About Flexible Working
Many employers today understand the challenges working parents face and are willing to offer flexible working arrangements to accommodate their employees' childcare needs. Check your workplace's flexible working policy or speak to your manager to discuss options such as working from home, adjusting your working hours, or even part-time arrangements.
Flexible working can be a win-win situation, allowing you to fulfil your work responsibilities while being present for your child when they need you. It might be that you can leave the office a bit early to pick your little one up and work from home for the rest of the day, or have dedicated work from home days to be home for the childcare drop off and pick up without your commute.
Don't be Afraid to Use Your Support Network
As a parent, it’s easy to be hesitant to ask for help, but don't underestimate the value of your support network. Grandparents, aunties, uncles, and other trusted family members can provide valuable assistance with childcare and often are happy to do so. Many are more than willing to lend a hand, especially if you're working or have other commitments and they know you appreciate the extra help.
You can also consider forming a childcare arrangement with other parents in your social circle where you can all benefit. This involves taking turns to look after each other's children, providing an affordable and convenient childcare solution and help out where you can to get the same bak in return. By sharing the responsibility, both families can save money and ensure their children are in a familiar and caring environment.
Consider Sharing Childcare
Hiring a nanny on your own can be expensive and often isn’t any cheaper than regular childcare or after school club. But there's a cost-effective alternative in the form of nanny sharing that some parents prefer to a childcare facility. Nanny sharing involves teaming up with one or two other parents to split the cost of hiring a nanny to look after your little ones together. By having the nanny care for a small group of children together, you can significantly reduce the overall expense and still have your little one looked after in a home environment that they know.
Before going ahead with nanny sharing, be sure to discuss schedules, responsibilities, and any specific requirements with the other parents involved. This ensures that each child receives personalised care while keeping costs down.
Childcare costs can be a huge burden for parents, but with the right strategies, you can find ways to reduce these expenses without compromising on the quality of care your little one receives.
Head here for more on how to decide between nursery and childcare.
