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Are childcare costs breaking your budget?

25 September 2010 No Comment

A new survey has found that one third of parents consider giving up work because of childcare costs to stay home instead. Simon Moore, Managing Director of CVS, said: “This is an alarming statistic and one which reveals the financial pressure that many new parents feel.

“Many parents clearly consider that it may be more cost effective not to work than to pay for childcare; with reports that childcare costs in the UK are higher than in any other country it’s a position that’s easy to understand. What we do not know is the number of people who decided it was more cost effective not to work than to pay for childcare.

“We believe that more must be done to raise awareness of what is available to help parents. Employers, carers and government all have a role to play in making sure that the return to work for parents, particularly new parents, is made as easy as possible.”

Childcare Vouchers can help parents save money on all types of registered childcare for children up to 16 years old.

Eligible working parents can exchange up to £243 per month of their gross salary for Childcare Vouchers.

The exchanged part of the salary is exempt from tax and National Insurance contributions; allowing parents to each make savings of up to £1,196* per year on their childcare costs.

The CVS survey also found that 71 per cent of working parents who use childcare vouchers spend less than one hour each week planning and organising childcare.

The same percentage – 71 per cent – agreed that they worried less about childcare than before they began to use Childcare Vouchers.

CVS – the largest dedicated supplier of Childcare Vouchers in the UK – surveyed 1,000 working parents.  *Higher rate and additional higher rate tax-payers may save more.

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