New research from Turn2Us reveals that 22% of parents are worried about additional childcare costs over the summer holidays. Here are a few tips to keep them down.
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Childcare tax credits
If you work for 16 hours or more a week (if you're a couple, you must work at least 24 hours a week between you) and pay for childcare at the same time, you could qualify for the childcare element of Working Tax Credits to help you with your costs. (Note, this is not the same as Child Tax Credits.) How much you receive will depend on your household income - but if this is under £40,000, it's likely you'll be able to make a claim.
The childcare element of the Working Tax Credit can help you with up to 70% of your childcare costs, based on a maximum of £122.50 per week for one child, and a maximum of £210 per week if you're paying for two or more children.
To qualify, the childcare provider you use must be registered with Ofsted. You can find registered childminders via your local council.
Unfortunately, the tax credits system is incredibly complicated, so for an easy way to find out whether you qualify, use the Tax Credits calculator on gov.uk or call the tax credit helpline on 0345 300 3900.
Find out more by reading Working Tax Credit: am I eligible, how to apply and how to renew.
Childcare vouchers
Your employer may be able to help you with childcare costs using childcare vouchers.
These are part of a Government scheme which can save each working parent up to £624 each year in childcare costs for higher-rate taxpayers (£1,196 if you signed up before the rules changed on 6th April 2011), and up to £933 per year for basic-rate taxpayers.
The scheme allows parents to sacrifice some of their gross salary in return for vouchers which can be put towards the cost of childcare – this means you'll avoid having to pay tax or National Insurance on this amount.
Parents who are basic-rate taxpayers are allowed to receive a maximum of £243-worth of vouchers each month, higher-rate taxpayers up to £124 a month and additional-rate taxpayers up to £110 a month. Pretty much any form of registered and approved childcare can be funded with vouchers, such as childminders, day nurseries, registered nannies, breakfast and after school clubs and holiday clubs.
The downside is that if you receive these vouchers, it can affect the amount you receive in tax credits (if you're eligible). Fortunately there's a nifty calculator to help you decide whether you're better off having childcare vouchers or the childcare element of Working Tax Credit.
If you are better off having vouchers, it's well worth finding out whether your employer offers a voucher scheme – even if it doesn't, you could try to convince your employer to start one as it doesn't cost anything to set up, and could save your employer up to £227 per employee each year through reduced National Insurance payments.
Nanny sharing
Hiring your own 'Mary Poppins' to look after your kids at home can do some serious damage to your bank balance. But thanks to websites such as nannyshare.co.uk you can now share a nanny with another family!
This website allows you to search for families in your area that are also looking for childcare. Once you've done that all you need to do is hire a nanny and split the costs. It's that simple!
Au pairs
Holiday clubs
School holidays always come round quickly, so if you're looking for childcare during these holidays, it's well worth checking to see whether there are any holiday clubs at the school itself, or at local leisure centres or churches.
Some schools and nurseries will also hold after-school clubs during term time for working parents who can't pick up their kids at 3.30pm on the dot. To find out more about holiday schemes in your area, check with your local council.
Find your Family Information Service
If you're struggling to find a last-minute childminder or want more information on a family event going on in your area, find your local Family Information Service.
It'll give you loads of free advice and guidance on where to find children's centres, breakfast and after school clubs as well as all-important back to school information. You can track down your nearest Family Information Service through the Family and Childcare Trust.