Fees

Help with Childcare Costs

Help is available from a wide range of sources and are all dependant on individual circumstances. At Daisy Chain we aim to provide you with as much information as we can to try to assist you with the cost of high quality childcare.

Fee Structures

The fee structure is:-

£34.50 per day for 1 or 2 days
£33.50 per day for 3, 4 or 5 days

The nursery is open for 51 weeks per year and all fees are calculated on a monthly basis.

e.g.             a child attending 2 days per week for the whole year
                   fees would be:       (£34.50 x 2) x 51 = £293.25
                                                        12

Tax Credits

Working Tax Credit and the Childcare element is in place to help working families on low incomes. It is a common myth that lower income earners cannot afford to use formal childcare due to the cost involved, and therefore either rely on family members or friends to meet their childcare needs or do not return to work after the birth of their children.

Whilst there are certain qualifying criteria that need to be met in order to claim for Working Tax Credit and the Childcare Element, we have linked up with the Early Years team in Rotherham to help provide accurate information about tax credits to assist parents make an informed decision about what assistance they may receive if they decide to use a formal childcare setting.

We have provided below a number of scenarios which you may be able to identify with and may reflect your personal circumstances:

Case 1

Married couple Baby under 12 months Another child aged 2 Father working 40 hours Mother not working Income £19600 Childcare costs £146.63 per month	WTC Entitlements		Calculation
	Basic element	£1730	Annual income	£19600
	Couples element	£1700	Less threshold	-£5220
	30 hour element	£705	Excess income	£14380
			37% of excess	£5321
	Sub Total:	£4135

	CTC Entitlements		Max tax credit entitlement	£8915
	Family element	£545	Max tax credit entitlement	£8915
	Baby element	£545	Less 37%	£5321
	Child element (x2)	£3690	Annual Award	£3594
	Sub Total:	£4780	Monthly Award	£299.53

Case 2

Married couple Baby under 12 months Another child aged 2 Father working 40 hours Mother working 16 hours Income £24051 Childcare costs £569.50 per month	WTC Entitlements		Calculation
	Basic element	£1730	Annual income	£24051
	Couples element	£1700	Less threshold	-£5220
	30 hour element	£705	Excess income	£18831
	Childcare (80%)	£4992	37% of excess	£6967
	Sub Total:	£9127

	CTC Entitlements		Max tax credit entitlement	£13907
	Family element	£545	Max tax credit entitlement	£13907
	Baby element	£545	Less 37%	£6967
	Child element (x2)	£3690	Annual Award	£6940
	Sub Total:	£4780	Monthly Award	£578.29

Case 3

Single parent 1 child aged 3 Working 21 hours per week Income £9500 Childcare costs £427.13 per month	WTC Entitlements		Calculation
	Basic element	£1730	Annual income	£9500
	Lone parent element	£1700	Less threshold	-£5220
	Childcare (80%)	£3744	Excess income	£4280
			37% of excess	£1584
	Sub Total:	£7174

	CTC Entitlements		Max tax credit entitlement	£9564
	Family element	£545	Max tax credit entitlement	£9564
			Less 37%	£1584
	Child element (x1)	£1845	Annual Award	£7980
	Sub Total:	£2390	Monthly Award	£665.03

Case 4

Single parent One child, aged 4 Working 30 hours Income £18200 Monthly childcare costs £569.50	WTC Entitlements		Calculation
	Basic element	£1730	Annual income	£18200
	Couples element	£1700	Less threshold	-£5220
	30 hour element	£705	Excess income	£12980
	Childcare (80%)	£4992	37% of excess	£4803
	Sub Total:	£9127

	CTC Entitlements		Max tax credit entitlement	£11517
	Family element	£545	Max tax credit entitlement	£11517
			Less 37%	£4803
	Child element (x1)	£1845	Annual Award	£6714
	Sub Total:	£2390	Monthly Award	£559.53

Case 5

Married couple Dad works full time Mum works part time Joint income £56500 Three children, 2 aged 2 and one aged 7 Monthly childcare costs £1423.76	WTC Entitlements		Calculation
	Basic element	£1730	Annual income	£56500
	Couples element	£1700	Less threshold	-£5220
	30 hour element	£705	Excess income	£51280
	Childcare (80%)	£12480	37% of excess	£18974
	Sub Total:	£16615

	CTC Entitlements		Max tax credit entitlement	£22695
	Family element	£545	Max tax credit entitlement	£22695
			Less 37%	£18974
	Child element (x3)	£5535	Annual Award	£3721
	Sub Total:	£6080	Monthly Award	£310.12

NB: these calculations have been done using our daily rate of £33.50 or £34.50, and then converted into a monthly fee amount, dependant on the number of days you use each week (as detailed in our fee structure earlier in this page)

If the examples included do not reflect your circumstances or you would like to discuss your individual circumstances in confidence, please do not hesitate to contact the Childcare Sustainability Officer, Melanie Hunt, at Rotherham Early Years,
tel: 01709 822549 or by e-mail on melanie.hunt@rotherham.gov.uk .

Melanie will be able to provide information and advice on a wide range of issues around help with childcare costs and can answer any questions you may have.

Childcare Vouchers

In the event that you are unable to receive help with childcare costs through the Working Tax Credit system, your employer can support you by offering Childcare Vouchers. Childcare Vouchers work on a salary sacrifice basis, whereby you can sacrifice up to £243 per month of your salary in return for the same value in vouchers. Because these vouchers are offered to you free of Tax and National Insurance, real savings can be made on your childcare costs. Your gross salary will be reduced by the amount of childcare vouchers you request, and then your Tax and National Insurance contributions will be calculated on the reduced amount of your salary, effectively saving you money.

Examples of savings:

Amount in vouchers:		£50	£100	£150	£200	£243
		Annual Savings:
Annual Salary	£40k+	£246	£492	£738	£984	£1195
Annual Salary	£10k - £33k	£198	£396	£596	£792	£962

daisy chain | childcare