Help with childcare costs
Nannies are expensive – there’s no denying it. But there are systems available to help with the cost. The older system is Childcare vouchers (no longer accepting new applicants), recently replaced by the newer Tax free childcare.
If you are currently receiving childcare vouchers, you can use them to pay part of your nanny’s salary as long as she’s on the Ofsted register (see below) – ask your voucher provider for advice on getting the Nanny on their system.
If you’re not currently set up to use childcare vouchers, you will no longer be able to enrol – the system stopped accepting new applicants in 2018. However, the tax free childcare system came into force in 2017 to replace the voucher system and is open to most parents – see below for details.
The tax free childcare system gives you up to an additional £2000 per year for each of your children (up to 11 years of age, or 16 if they have a disability). Once you set up an account, for each £8 you put in, the government will put in a further £2. You then use this account to pay your nanny.
Am I eligible to receive Tax Free Childcare?
There are certain requirements that need to be met to qualify for Tax Free Childcare – both you and your partner (if you have one) must:
- Be working, and each earning at least NMW for 16 hours a week
- Neither of you can be earning over £100,000 per annum
- The children must be living with you
Once you set up an account, you will need to re-confirm your eligibility every 3 months.
Are all nannies eligible?
Any nanny who is registered with Ofsted can accept either the vouchers or the tax free childcare payments as part of her salary. Nannies are on the voluntary Ofsted register (not the compulsory register, which is where nurseries, schools and childminders are listed). To register, a nanny needs to hold:
- A childcare qualification – the minimum accepted is Common Core Skills (a 1 day/online course outlining the basics)
- A DBS check (enhanced disclosure) which is registered with the Online Update Service
- Paediatric first aid – usually a 12 hour course, although some trainers offer part online training ahead of the practical. The cost for this varies massively – local companies are around £80, the big ones around £150. First aid needs renewing at least every 3 years.
- Nanny insurance – essentially public liability insurance, although the policy is specific to nannies. It is around £70-80 a year.
Rosebud Nanny agency works with local first aid trainers and Common Core skills trainers – their details can be seen under Useful Links and offer discounts when mentioning us.
As the employer benefits from the Ofsted registration, typically the employer covers the Ofsted registration fee (£103 a year). The nanny would cover the associating costs above.
Rosebud Nanny Agency is happy to further advise, and can help your Nanny apply for Ofsted registration.
November 25, 2019
by Abigail Plested
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