5 ways to cut childcare costs
Claim childcare vouchers/tax credits
Childcare vouchers, which enable you to pay for childcare out of your gross (pre-tax and National Insurance) income, could cut your childcare costs by more than £1,000 a year.
Your kids must be under 16 to qualify, while it is also only an option if your employer offers the scheme.
The benefits can be huge, though. Say you 'sacrifice' £1,000 of your annual salary to buy childcare vouchers. That money would only be worth about £700 after tax, but will buy you a full £1,000 of vouchers – meaning that you save £300.
Childcare tax credits are also designed to help working parents cover the cost of childcare, with families with a household income of £42,000 or less being the main recipients.
You may still qualify if your household income is above this amount though, so it’s worth checking by calling the tax credit helpline on 0845 300 3900. Just be aware that claiming childcare vouchers could affect your eligibility.
Every week, Clare Francis, financial journalist and editor of comparison site moneysupermarket.com will offer tips and advice on all things money-related to help iVillagers make the most of their hard-earned cash. From energy bills to car insurance; credit cards to children’s savings accounts; mortgages to discount vouchers Clare will show you how to make sure you’re getting the best deal.