HIDDEN TREASURES
If we counted up the cost of bringing up a child we would undoubtedly frighten ourselves to death. But there is help out there if only we know where to look. We sift through the red tape to discover ways to make life a little easier
With worries about job security ever
looming and in spite of all the government
directives ensuring the rights of working
parents, it has never been more important
to ensure stable, reliable childcare
and schooling.
IT HAS NEVER BEEN
MORE IMPORTANT
TO ENSURE STABLE,
RELIABLE CHILDCARE
AND SCHOOLING
The newspapers have been full of scary
stories of population explosions and
closing private schools which have
led to a huge pressure on places. Good
provision is often expensive as parents
seek the very best for their children.
However, there is help available if you have
time to sift through the various schemes
and the too often unintelligible paperwork.
Funding for pre-school children:
Nursery Education Grants (NEG)
All three and four year-olds are entitled to twelve and
a half hours of free early years education a week
for 38 weeks of the year, with a registered provider
such as a school, nursery, or playgroup, regardless
of income or circumstances. Some large employers
provide registered early years education at the
workplace. You can also use a registered childminder
if they are part of an approved childminding network.
From September 2009, about a quarter of eligible
three and four year-olds will be able to access 15
hours a week. This will be available if your child is
attending a provider who has been invited to offer
these hours. From September 2010, all eligible three
and four year-olds will be able to access 15 hours of
‘Free Entitlement’ per week.
Childcare Vouchers:
Salary Sacrifice Scheme
Childcare vouchers can save parents thousands of
pounds a year. They were introduced by the
government in their current form in April 2005 to help
working parents make their childcare more affordable.
This scheme enables you to pay for childcare out of
Pre-Tax Income and you can choose your own
childcare provider which includes any nursery,
playgroup, nanny, childminder, or au pair who is
registered and regulated by Ofsted.
These vouchers can be used to cover childcare up
to 1st September after your child’s 15th birthday.
Ask your employer if they run a childcare voucher
scheme and if they don’t, get together with other
parents and request this facility. Providing childcare
vouchers should not cost the employer. In fact, as
they don’t pay National Insurance on the vouchers,
it actually saves them money too! Firms can offervoucher schemes one of four ways, either by
operating the scheme themselves or by using one
of the many voucher companies such as Avent
Childcare Vouchers, Busy Bees, Early Years Vouchers,
Employers for Childcare. Before accepting childcare
vouchers check for tax credit implications though.
Bursaries:
Some independent nurseries and schools will offer
bursaries. The key message is honesty and
openness. Many schools are prepared to help
parents who in the good times have supported the
school if suddenly that parent finds themselves in
difficult financial circumstances.
Schools are introducing various support systems
from simply enabling parents to spread or defer
payment, use monthly standing orders or by giving
discounts for paying fees in advance. If you have
more than one child at the school, most schools
offer sibling discounts.
The Independent Schools Bursars’ Association has
provided member schools with guidance as to how
to help and schools may well ask for details of your
financial status by giving you a confidential form to fill
in. Don’t be embarrassed about asking as most
schools will do their best to keep children from the
distress of moving schools when times are difficult
within the family if they can possibly do so.
Scholarships:
If you have a particularly gifted or talented child,
it is definitely worth asking about scholarships
which may amount to up to 50% of the school fees.
Academic, Sport, Music or Art scholarships can be
available and it is always worth asking the school
for details.
POSSIBLE SAVINGS
Nursery Education Grants
Possible Annual Saving:
This entitlement is worth up to approx. £1,600 with a further £300 with the
extended entitlement.
Childcare Vouchers
Possible Annual Saving on tax and National Insurance:
Employee Situation Based on a value
of £243 per month Based on a value of £150 a month
Higher rate tax payer £1,196 £738
Basic rate tax payer £904 £558
Scholarships
Possible Annual Saving:
£11,000 based on a senior school boarding fee of £7,707 per term
Bursaries
Possible Annual Saving:
With a 10% bursary..........................................£933.00
With a 25% bursary ......................................£2,333.00
Further 5% sibling discount ............................£ 466.50