Is it worth going back to work if childcare costs almost as much as my salary?

In the short term, the financial gain can look small or even negligible for parents on lower salaries with young children. But it is worth factoring in pension contributions, potential salary growth and promotions, and the impact on your career trajectory. The financial picture also changes as children grow and access more funded hours.

What government help is available when I return to work?

Eligible working parents in England can now access 30 hours of government-funded childcare per week from when their child is nine months old until they start school, covering 38 weeks per year. Tax-Free Childcare tops up every £8 you put in with £2, up to £2,000 per child per year. If you receive Universal Credit, up to 85% of eligible childcare costs can be reimbursed.

Can I use Tax-Free Childcare to pay for babysitters?

Tax-Free Childcare can be used to pay for childcare provided by Ofsted-registered carers. This includes nurseries, registered childminders, and nannies who are registered with a childcare scheme. It cannot be used with providers who are not registered with a regulatory body.

What are the hidden costs of returning to work I might not have thought of?

Beyond childcare, the main costs to factor in are commuting (travel, fuel, parking), lunches, work clothing, and any reduction in benefits as your household income rises. It is also worth accounting for the cost of holiday childcare cover and sick day cover.

Does returning to work affect my pension?

Yes - in a positive way. When you return to work, auto-enrolment means your employer must contribute to your pension alongside your own contributions. This is particularly significant for parents who have taken extended career breaks, as gaps in employment mean gaps in pension savings.