Angels & Urchins - Autumn 2003
CHILDCARE AT HOME EXTENDED - Nannies To Be More Affordable
In today's economic climate more parents work long, sometimes unsociable hours and affordable yet flexible childcare is hard to come by. Many parents would prefer to have their children looked after in their own home and by a reliable, qualified child carer. A nanny is often a family's first choice as she offers the most flexible form of childcare, but unfortunately this flexibility doesn't come cheap. Employing a nanny is currently a very expensive option, as parents not only have to pay nanny's wages but also her income tax and employee's as well as employer's National Insurance Contributions out of their own, already taxed, income.
The Government has recently announced that the Childcare element of the Working Tax Credit, which has already been extended to include those who use Ofsted regulated childcare in their own home, is soon to include nannies. Families with a combined income of £58,000 or less can receive financial help to cover up to 70% of childcare costs, to a maximum of £94.50 for one child and £140 for two or more children.
At this point nannies are not regulated nor registered so parents who want to take advantage of the Tax Credit for home-based childcare have therefore no other choice than to use an approved childminder. However, childminders are not ideally suited as they are self-employed, prefer to work in their own home and often have their own family commitments, leaving them unavailable "after hours". A nanny on the other hand is an employee who by default works in the family's home and is familiar to working outside conventional hours.
The regulation and registration of nannies, a different mechanism for which is currently being considered by the DfES, will not only make home childcare available to many more parents, it will also give nannies the greater professional recognition they deserve.