Get £££'s to care for kids
WHAT have dirty nappies and thousands of pounds of cash got in common?
Parents across the country throw BOTH away every day.
Serious money is available for anyone paying for childcare - including extra summer costs - yet many mums and dads miss out.
And it's not just for cute little babies either. If you're paying for them to be looked after, 6ft 2in hairy 15-year-olds count too (and that's just the girls!) The big money comes via tax credits and vouchers (see below) but there are other ways to get help:
- Early Learning Classes: Three and four-year-olds are entitled to 12.5 hours a week for at least 38 weeks a year at Sure Start children's centres, nurseries, pre-schools and accredited childminders. So use this instead of paid-for childcare. Call the Families Info Service on 0800 2346346 (different rules apply in Wales or Scotland).
- Free Or Subsidised Holiday Classes And Activities: Lots of schools run fun summer clubs, and not just for their own pupils. If you need to pay, tax credits and vouchers may be an option.
Childcare vouchers
- What are they? A government scheme giving a major cash boost. You pay for Ofsted registered childcare from PRE-TAX income.
- How do they work? It's the only time that volunteering for a pay CUT makes sense. If you agree, for example, to temporarily earn £1,000 less and get £1,000 of vouchers instead, you are actually around £300 better off. This is because £1,000 of salary is only £700 in most people's pay packet after tax.
- What's it worth? You can get up to £243 of vouchers PER PARENT per month, whether you have one child or a Brady Bunch. And remember that the vouchers usually have long expiry dates, so you can save them up. With both parents using maximum vouchers, basic-rate taxpayers are £1,800 a year BETTER OFF per couple and higher-rate taxpayers more than £2,000.
- Aren't they being scrapped? They were, then they weren't, then the election happened. Now, the only scheduled change is next April, when higher-rate taxpayer's gain will be reduced to the same as the basic rate's.
- How do I get them? Ask your employer. If it doesn't offer them, suggest it starts. Try politely saying: "It'll make me feel like I'm being paid more without you actually having to do it! And YOU will save on employers' national insurance costs too."
- Can you get vouchers AND tax credits? Yes - but there's a BIG BUT. The amount of tax credits given depends on what you pay for childcare - but paying in vouchers doesn't count, so it can lower credits. For those ineligible for tax credits, vouchers are a no-brainer. If you are eligible, then one nightmare scenario sees vouchers losing you money. This is ridiculous and the rules are badly communicated. I met the Treasury last year to push for change, and things have improved slightly. See www.hmrc.gov.uk/calcs/ccin.htm to work out if you'd gain or lose.
Childcare Tax-credits
- What is it? It's a payment to help some working people cover childcare. Technically it's "the childcare element of the working tax credit". Don't confuse it with the separate child tax credit.
- What's it worth? It may be for childcare but it's a seriously grown-up amount. The AVERAGE is £3,500 A YEAR. It's paid into your bank or building society account and covers up to 80 percent of childcare costs.
- Who's eligible? I could fill this newspaper explaining the complexities, so instead here's my rule of thumb: "If you're a single parent working 16-plus hours a week, or a couple BOTH working 16-plus hours and your family income's under £40,000, definitely check it out." I've picked my words carefully. It's not that you'll definitely qualify if the above applies to you but you should definitely see if you're eligible - as it could be a decent whack. But those with a big brood or a disabled child should check anyway. You may be able to get the tax credit even if you're income's higher than £40,000.
- What counts as childcare? It can be a school club, nanny, nursery or owt else, provided it is registered and regulated by Ofsted in England, or its equivalent in Scotland or Wales. Check with them or look at www.childcarelink.gov.uk
Interest hike fury
Q: MY monthly NatWest credit card statement says: "Your interest rate(s) are changing from the day after your statement in two months' time. If you wish to close your account and pay at the existing rate, please contact us within 30 days." Is this increase fair and legal? HAYWARD GODWIN, Poole, Dorset
A: YES it's legal - I call it rate-jacking. Yet the good news is that the bank's obliged to give you a big opt-out clause.
Look again at what you sent me. It says "if you wish to close your account and pay the existing rate".
Let me translate that for you. It means: "You can reject the rate rise for ALL your current debts, provided that you agree not to borrow any more."
So as long as you keep up your current repayments, your rate will stay as it is.
See www.moneysavingexpert.com/ratejacking for more info.
Please note: All comments are moderated.
Tick this box to accept our
TERMS & CONDITIONS
|
Email your questions to notw@moneysavingexpert.com |
FlightChecker: Finds dirt cheap budget flights
Megashopbot :Search lots of shopbots in 1-click
Travel Money Maximiser: Best holiday cash deals
Budget Planner: Organise your finances
RewardsChecker: Credit card rewards evaluated
Find your MSIQ: Test your MoneySaving brain.
The Demotivator: Don’t spend if you can’t afford
Bank Charges Calc: What interest to charge them
Int CallChecker: Cheapest calls by country
Car Ins Job Picker: Tweak job title to save cash
Min. Repayment Calc: Beat the credit card trap
This article has 2 comments
I tend to agree with Beverley
We should look after our own children. Why have children if you cannot look after them due to work committments I don't see the point. I know many will say they have no choice they have to work to keep things going but in that case do not have any kidsuntil such time as you are financially stable to rear them up. Kids love nothing more than being with you , you can buy them all the gifts an gadgets in the world but it does not replace their parent. The government should make it easier on families so they can stay and rear their children and enjoy them while they are young because within a blink of an eye they are off on their own and you will wonder where the years went.
By Benni.. Posted August 2 2010 at 6:25 PM.
There is one little item not mentionned that should be . We are being offered the chance to get paid for NOT taking care of kids not for taking care of them. We are given all these options to have someone else take care of them, anyone in fact but us.
There is an agenda here clearly, to enhance the job sector that does paid care of kids, and a government agenda to make parents spend as much time as possible away from their kids under the guise of 'freeing' them to not have to be with the kids.
Let's imagine a parallel - you get paid money to find someone else to spend time with your spouse, anyone but you. YOu can get vouchers for this paid companion. But the state would never ever dream of helping you have time with the one you love.
How fair does that sound? Imagine how fair that sounds to a child.
A fair government would fund care of children period. Yes some will use it for interesting sports, arts, music camp but others might take a week from paid work and go with their child on a little camping trip to reconnect and get to know each other again. In the long run which one will leave the best lasting impression on the child? Guess.
By Beverley Smith.. Posted July 25 2010 at 1:57 PM.