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Originally Posted by dr wadd
While I don`t agree with this idea, and I certainly wouldn`t argue for more to be paid, a sum of £150 a week really isn`t going to make it worthwhile for anyone to take up this offer. It just about equates with minimum wage, assuming a 35 hour working week, but for a large number of people this is going to represent a drop in income that isn`t particularly attractive. Even if you end up paying for child care there will a lot of mothers for whom this isn`t a finanancially viable option.
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Some basic math (Jerrek RIP) on this one.
£150 a week is effectively a take home/ after tax figure.
£200 a week is about the cost of daycare in the south, but that comes from your after tax income.
Assuming 4 weeks a month 12 months a yearâ₠¬Ã‚¦
So to take home the £150 a week (£600 a month), you would need to earn £900 a month pre deductions.
To pay for the childcare of £200 a week (£800 a month) you would need to earn £1200 a month.
Following this?
Combined, to pay for childcare and still takehome £150 a month you would need a gross monthly income of £2100 a month, after deductions this would leave you with about £1400 which you would give £800 to the childcare provider and £600 for yourself.
Mulitply £2100 by 12 and you get an annual salary of roughly £25,000 .
So for anyone earning under £25,000 you are better off staying at home (however the point of this is to give a lifestyle choice, not a better / worse decision), and realistically anyone earning up to about £40,000 would have a fantastic choice to make as much of that additional £15k will disappear into additional tax, work clothing, travel, lunches etc, so the decision can still be marginal.
The £150 hits the national average income on the button, clever that, this would be financially viable to many parents, it would certainly have made a impact on mine and Mrs Hâ₠¬ÃƒÆ’¢â€žÂ¢s lives during the first year of Baby (now Toddler) Hâ₠¬ÃƒÆ’¢â€žÂ¢s life. She gave up work to be at home with him, a decision that was financially expensive, but a lifestyle choice, the governments current taxation system means that a couple both earning £25k are significantly better off than one earning £50. As both Mr T and I have said earlier in this thread, sharing of personal allowances (itââ‚Âà ‚¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚¢s personal, why canââ‚Âà ‚¬ÃƒÂ¢Ã¢â‚¬Å¾Ã‚¢t I give it to someone else?), would be a good alternative, it would also benefit those who have contributed to the system, wheras this proposal would also benefit chav nation.