Mums caught short with childcare costs
24th August 2009
Just under half of British mums and mums-to-be underestimate the amount that they need to earn to cover the cost of childcare, according to new research by finance website MoneyforMums.co.uk.
Around half (42%) of British mums think that a salary of just £20,000 (£15,724 after tax) a year is the minimum that is needed to cover childcare costs. However, calculations from the financial website uncover that the cost of full-time nursery childcare in the UK for two children averages out at £325* a week – that’s £16,900 per year. Women on this income have the choice of returning to work for little or no financial gain or choosing to give up work to care for their own children instead.
As childcare costs continue to rise above inflation, over a third of the mums stated that returning to work was not an option because their salary would not or did not cover the cost of childcare. On the other hand one in ten are feeling the pressure to cut their maternity leave short and return back to work earlier than planned, in order to ensure job security or make up for household income where there has been a redundancy.
Over a quarter of mums are currently re-evaluating who takes care of the children. Mums with a higher earning capacity than their partner could consider leaving the dad holding the baby. Free childcare from extended family is also on the rise with over half of the mums turning more to grandparents and siblings to help out.
Kate Moore, Head of Savings and Investments at MoneyforMums.co.uk said: “Returning to work after maternity leave can be an emotional time for many women, without the added pressure of worrying about the financial implications of being a working mum. The MoneyforMums website has a childcare calculator to help mums review the costs of returning to work. We also provide a summary of the benefits and support available from Government and employers for working mothers such as childcare vouchers and flexible working. We can’t necessarily make the decision easy, but we can provide the information mums need to make an informed choice for them and their new family.
By logging onto MoneyforMums.co.uk, mums can find all the financial information they need to cope with their changing circumstances, as well as handy calculators to find out what benefit and support is available to them.
- Ends -
Notes to editors:
*Based on two children in full-time nursery in the south of England (source: Daycare Trust childcare costs survey 2008). Note that these figures don’t take into account benefits such as the Childcare element of Working Tax Credits, Child Tax Credits or the extra costs associated with working such as travel expenses and work clothes.
For more information contact:
Suzi Smith on 020 7973 5969 / suzi.smith@hillandknowlton.com
MoneyforMums is provided by Family Investments
- Family Investments aims to be the trusted supplier of financial solutions for the family and is the UK’s favourite Child Trust Fund provider with more than 675,000 Child Trust Fund accounts.
- Family Investments has 30 years experience providing investments for families and currently looks after around £1.8 billion of family money for over 1m people in the UK.
- Family Investments is a mutual which means it is run for the benefit of members rather than shareholders.
- Our expertise is widely trusted and recognised, which is why we’ve been chosen to provide the Child Trust Funds of these high street names; Abbey, Barclays Bank, Post Office, Sainsbury’s Bank, Yorkshire Bank, Bradford and Bingley, Clydesdale Bank, Coventry Building Society, Early Learning Centre, Northern Bank and Skipton Building Society.
- We provide a range of Post Office ISAs.
- Family Investments is the trading name of Family Assurance Friendly Society and is authorised and regulated by the Financial Services Authority.
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