Thread: Child Care
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Old 03-05-2005, 00:30   #17
SMHarman
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Re: Child Care
Quote:
Originally Posted by Incognitas
When I was paying for childcare when my children were smaller I was paying out £50 a week.I could afford that but a low paid single parent couldn't.I've no idea what the present rate is now..
Age 0-2 £228 week / £975 month
Age 2-3 £220 / £953
Age 3-5 £210 / £910
As a personal example - South East England Prices.

Thats out of your after tax income.

One of the biggest problems IMHO is the inequity of the current process, my new eer offers flex benefits that mean I can salary sacrifice for childcare vouchers, the first 217 a month of these is tax and NI free. I've taken this as we have a childcare bill, this equates to a £1000 pay rise for our household over my previous job simply because of a tax break that not all eers offer.

Now if Mrs H also worked for an eer that did this (it is expensive for smaller cos to operate) then that would be another 217 of the bill tax free.

So running the numbers
It cost us £953 a month of after tax salary before.

Now it costs us 736 a month of after tax and 217 tax free

If both of us were with ees that paid child care vouchers it would be

£519 of post tax and 434 of tax free.

There is a great ineqity here between ees that work for companies offering vouchers and companies that dont in terms of how much it costs for childcare.

This governments wonderfully complex way of distributing this benefit means that it does not reach all that could use it. Thats the problem I have with it.

There is an off topic on this thread of SAHM vs Working Mum. After the first year-18 months IMHO they are better in day care as they can provide a better structure, friends etc than a SAHM can.
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