Childcare options
Family Life
Choosing the right childcare can be a daunting task. This guide takes you through the different options think about which ones suit your family’s needs and budget best. Registered childminder What is it? Someone who looks after children in their own home and is registered with one of the following: • Ofsted (England) • Care Inspectorate (Scotland) • Care and Social Services Inspectorate (Wales) • Health and Social Services Trust (Northern Ireland) Pros and cons • They’re self-employed, so you don’t have to worry about paying their tax or National Insurance (NI) contributions. • As long as they’re registered, you may be eligible for help to pay for your childcare using Tax-Free Childcare, or to claim back up to 85% of the monthly childcare if you’re eligible for Universal Credit, or to use childcare vouchers or claim the childcare element of Working Tax Credit. • Many childminders work flexible hours and pick up/drop off children at school or playgroup. • You can use your free weekly childcare allowance if your child is three or four. • You’ll need to make other arrangements if they’re ill or on holiday. Day nursery What is it? Care and education for children aged six weeks to five years. They might be run privately or by community organisations, local authorities or employers. Pros and cons • They’re typically open weekdays from 8am to 6pm, which fits most working hours. • Nursery fees are sometimes subsidised by local authorities or employers. • You can use childcare vouchers or claim the childcare element of Working Tax Credit to help with the cost. • You can use your free weekly childcare allowance if your child is three or four. • They’re usually more expensive than
childminders • You usually have to pay the fees when you’re on holiday.
sessions for three to five year-olds. They typically offer three-hour morning or afternoon sessions during term time.
Nanny What is it? Someone who looks after a child in its own home. It’s usually a live-in or daily role, but parttime nannies are also available. Nannies can voluntarily register with Ofsted.
Pros and cons • A low-cost option • As long as they’re registered, you can use childcare vouchers or claim the childcare element of Working Tax Credit. • You can use your free weekly childcare allowance if your child is three or four. • You’ll need to find alternative childcare to cover the school holidays and/or the rest of the day.
Pros and cons • Your child is cared for at home. • As long as they’re registered, you can use childcare vouchers or claim the childcare element of Working Tax Credit. • You’ll be their employer, and responsible for paying their Income Tax and NI contributions. • As an employer, automatic enrolment means you’ll have to pay into a pension for your nanny if they earn more than £192 a week (£833 a month) before tax. • You’ll need to make other arrangements if they’re ill or on holiday. Au pair What is it? Someone who lives with you and learns the local language and culture while providing around 30 hours’ childcare and help around the home. Pros and cons • They’re paid ‘pocket money’ so the costs are much lower than other childcare options • They’re usually treated like a member of the family rather than an employee so you won’t have to deal with their tax or NI. • You can’t use childcare vouchers or claim the childcare element of Working Tax Credit. • You’ll need to factor in the cost of their room and board on top of what you pay them. Playgroup or pre-school What is it? Community and voluntary-run care and education
Family or friends What is it? Having a family member or friend look after your child, either for free, payment or an arrangement where you look after each other’s children (known as ‘reciprocal childcare’). This might seem like a convenient and affordable option, but the rules around these kinds of arrangements can be complex. Pros and cons • A family member doesn’t have to be registered with Ofsted if they’re providing childcare free of charge. • Legally, you can’t use a friend to regularly look after a child under eight for more than two hours a day during normal working hours - unless they’re a registered childminder. This is something to think about if you have a reciprocal childcare arrangement. • If you pay a family member or friend for childcare, you can’t use childcare vouchers or claim the childcare element of Working Tax Credit or Universal Credit unless they’re a registered childminder and look after at least one other unrelated child. Whatever option you choose juggling childcare both financially and practically can be hard work so do not rush into a decision and make sure you visit all settings to gauge how you feel about them. This will allow you to make an informed choice. www.simplyboston.co.uk | SIMPLY BOSTON | 13
