Factsheet: Childcare

April 2007

Finding childcare is one of the most difficult aspects of getting back to work for a parent. You have to find something suitable for your child which fits in with your work patterns and is affordable and in your area! This factsheet aims to explain the types of childcare available, what you need to take into account when choosing childcare, and how you can get help with paying for it. If you have disabled children, you may also want to look at our Childcare for Disabled Children factsheet.

What to take into account

The factors you need to take into account when choosing childcare very much depend on your child and your working situation.

Your child's needs:

• How old is your child? What level of care does he or she need?
• Does your child prefer to be among other children or would one to one care be more suitable?
• Is it important that the same person cares for your child all the time?
• Does your child have any special requirements, for example your child may require a special diet or extra care because he/she is disabled.

Your needs:

• What hours do you need childcare for?
• Do you work at the same time each week or does your shift pattern change?
• Do you have to work through school holidays?
• Do you work very early in the morning or late in the evening?
• Will you have time every morning to get your child up, ready and take him or her to a carer?
• Will you need any other services like babysitting or help with housework?

Other considerations:

• What childcare is available in your area?
• What can you afford to pay?
• Do you have transport to take your child to a carer?
• Do you have space in your home for a live-in carer?
• What will you do if your child or the carer is ill? Note: you do have certain rights to time off for emergencies; please see Working Families' Time Off Factsheet.

Of course you may have other things to consider and there are no "right" ways of working out childcare.

What is the difference between registered and unregistered childcare?

Registered childcare includes childminders, nurseries and out-of-school clubs for under eights. These types of childcare have to meet National Standards which set out the minimum you can expect from registered care, such as how many children per adult and how much space the children have. Registered carers are also always police checked. Out-of-school clubs for over eights are not registered but can be approved by 4Children (formerly the Kids' Clubs Network). You can get help with childcare costs through Tax Credits only for registered or approved care.

"Light touch" registration

The Childcare Approval Scheme allows childcare which doesn't have to be registered, such as an in-home carer or someone looking after over 8s, to be approved. Approved care will be eligible for the childcare element of tax credits, and if you have a childcare voucher scheme at your workplace up to £55 per week of vouchers will be Tax and National Insurance free.

To be approved, carers must have a childcare qualification, a first aid qualification and be police checked. There will be a £99 charge for approval which lasts a year.

For more information see http://www.childcareapprovalscheme.co.uk or call Childcare Approval Service on 0845 767 8111

Nannies, mother's helps and au pairs are all usually unregistered, even if they come through an agency. This means that you would not normally be able to claim any of the costs back through Tax Credits unless they were approved under the light touch scheme. If you employ a nanny who hasn't been approved under the Childcare Approval Scheme, he or she might not always have qualifications or have been police checked, even if the nanny comes through an agency.

You could also use the Childcare Approval Scheme to approve someone who looks after over 8s in a domestic setting. For example, you may have a friend who you pay to look after your nine year old after school. She might not want to become a full childminder but she could be willing to be approved.

If a relative of the child looks after your child in their home, they will not be approved unless they also look after children to whom they are not related. This doesn't mean that they cannot look after your child for payment, just that you will not be able to claim the costs back through Tax Credits or get tax relief on your childcare vouchers. If the relative looks after the child in the child's own home you will not be able to claim, even if non relatives are also being looked after. The definition of relative is quite wide and includes relatives by marriage and by affinity (partners), even if they are not blood relatives of the child. For more information, call our helpline on 0800 013 0313 or the Childcare Approval scheme on 0845 767 8111.

Discrimination and childcare providers

The Race Relations Act, the Sex Discrimination Act and the Disability Discrimination Act give service providers such as childminders, nurseries and out-of-school clubs the obligation not to discriminate. In addition to this they have to meet national standards which include a commitment to equal opportunities and they have to "be proactive" in welcoming disabled children.

If your child is disabled, the way you give people information about your child's needs can make a difference. If you focus on what your child's needs are, rather than the name of his/her condition, the carer will know what to expect and be able to view your child as a person.

Under the Disability Discrimination Act service providers have to make "reasonable adjustments" to cater for disabled people. What is a reasonable adjustment would depend on the size and the resources of the service provider, so a large nursery would be expected to do more than a childminder. For more information on finding childcare for disabled children call Janet on 020 7253 7243 or see our Childcare for Disabled Children factsheet.

Types of childcare

Informal Childcare
Family and friends

Most parents use informal networks of family and friends to care for their children. If you have this support, it can make combining work and caring for a child much easier. The advantages of having someone you know well looking after your children are obvious but there can be disadvantages as well.

The carer's circumstances may change, for example, a new job or an illness may mean they have to stop looking after your child.

If you have different opinions on how your child should be raised, it can be more difficult to raise them with someone you are close to than where the relationship is professional.

If the care is in the other person's home and you are paying them, they may have to register as a childminder if they are looking after under 8s. Check with your local authority.

If you want to claim towards your childcare costs from Tax Credits your care must be registered or approved. Family members can register as childminders and you can claim for the care they are providing. Family members cannot be approved under the "light touch" scheme unless they are also looking after children they are not related to. You cannot claim for a relative providing care in the child's own home under any circumstances. (see above for more information)

Out of home childcare
Childminders

Childminders are self-employed and usually work in their own homes (there are exceptions, see below). Childminders must register with their Local Authority and must complete a pre registration course and a first aid course. They are not required to have formal training in childcare, although some do have the Certificate in Childminding Practice. Many childminders are parents themselves and the care will be in a "family" environment rather than being very formal. Childminders' hours are usually more flexible than a day nursery but few will take children after 7 pm.

The registering authority will:

• Check the childminder is suitable to look after children.
• Regulate how many children the childminder can look after at once. This depends on the ages of the children and the space available.
• Carry out police checks on all adults in the childminder's household.
• Check the childminder's home is safe.
• Carry out an annual check.
• Make sure the childminder keeps records on each child with information such as health problems and emergency numbers.
• Make sure every childminder has suitable insurance.

Childminders can look after older children as well as under eights, as long as caring for the older children does not affect the care of the younger ones. If your child is at school you need to check if the childminder picks up from that school.

Interviewing a childminder to check he or she is right for your child is as important as when you are employing a nanny or other care in your own home (see below). In addition you will need to ask questions about his or her home such as if he or she has any pets. You will also have to negotiate things like how much you pay and if you pay when you're on holiday or if your child is ill. Childminders are self-employed so you don't need to worry about tax and National Insurance but it is a good idea to have a written contract. The National Childminding Association sells model contracts - call 0800 169 4486

Nurseries

Nurseries provide care, play and education for pre school children. All nurseries have to meet national standards and are inspected by Ofsted. For example, the national standards require all supervisors and half of other staff to be qualified and all staff to receive basic training in health and safety.

In England, a nursery's Ofsted report is available to read at the nursery, at a local library or on line at www.ofsted.gov.uk .

In Scotland see www.carecommission.com

In Northern Ireland and Wales check with the relevant inspecting body.

As well as checking that the people running the nursery and the nursery building itself are suitable, the registering authority also reports on how well the nursery is doing in teaching the children.

Nurseries can be run by private companies, Local Authorities, community groups or employers. Most nurseries are open every working day, and 8 am - 6 pm are typical opening hours. Nursery classes attached to schools usually only take children for a 2 ½ hour session each day either in the morning or afternoon in term time only. While they offer play and stimulation for children the hours are not usually convenient for working parents. If your child attends a nursery class you will need to use some form of additional care - usually a childminder - to collect/drop off your child and care for them during school holidays.

Before choosing a nursery you should visit it, ideally more than once and at different times of day. You should ask yourself:

• Do the children seem happy?
• Is the nursery run around the needs of the children?
• Is the building and garden pleasant and suitable to play in?
• Are the staff happy and approachable? Do they welcome your child?
• Is staff turnover high? An unstable team is not good for the children and may point to problems in how the nursery is run.
• What are the staff's qualifications and experience?
• You will need to ask questions to find out if the nursery is right for your child, for example,
• Is the nursery very play-based or more like school?
• Can they accommodate your child's needs? Will play and learning be appropriate to your child's abilities?
• What food is provided? Can they provide meals for children with special religious needs or with allergies?
• Will they expect your child to be able to feed him or herself or be potty trained? If your child is not potty trained will you have to bring nappies in for him or her?
• What happens if you are late to pick up your child?

Out-of-School Clubs

More and more schools are offering after school clubs. Some also offer breakfast clubs. These may be at the school or in a suitable venue such as a community centre. Some local authorities offer holiday clubs as well.

You can find out a lot by visiting a club but you may also want to ask about quiet areas, whether there is outdoor play and if any snacks are provided.

You will also need to find out what age groups can be provided for - it can be hard to find out-of-school-clubs for older children.

To find childminders, nurseries or out-of-school clubs in your area, ring Childcare Link on 08000 96 02 96 or go to www.childcarelink.gov.uk

"In Home" Care - Care in your own home

Having someone to look after your children in your own home is essential for some people, for example if you work very early or late shifts or if your child needs special equipment which cannot be moved out of the house. In home care can also be more convenient as you don't have to get your children up and ready every morning and the carer may be able to help with the housework.

In home carers can live with you in your house or come in daily. Au pairs are an exception to this; they must be given a room in your home.

Nannies

Nannies are not regulated, so although they often are trained and/or very experienced in childcare, that is not always the case. You should always check a potential nanny's qualifications. A nanny can be approved under the light touch scheme.

Nannies can be expensive, especially if you only have one child. If you have more than one child or set up a nanny share, then it can be more cost effective. Nanny sharing is where a nanny looks after the children of more than one family, either at the same time or in "shifts". If you are thinking about nanny sharing you should check with your insurance company that you have the right cover. You should also remember that a nanny who looks after the children of more than two families must register as a childminder where they are looking after under 8s. You also need to work out in advance what happens if the needs of one of the families changes.

Finding a nanny.

Parents and nannies often advertise though local papers and on notice boards in places like libraries and community centres where children's activities are held. A school notice board is a good place to advertise for a nanny share.

You can also advertise in national magazines like Nursery World and The Lady or at colleges where nannies are trained.

It may be easier to use a nanny agency, especially if you are looking for a live in nanny. Nanny agencies will charge you either a fixed fee or a percentage of the nanny's salary. This can be more expensive than advertising yourself.

A good nanny agency will check qualifications and references, although you should still check them for yourself. Nanny agencies are listed in the telephone directory.

Always remember, although Nanny Agencies have to be registered employment agencies, anyone can be a nanny and anyone can set up a nanny agency .

Au pairs

An au pair is a single person aged between 17 and 27 who comes from abroad to live as a member of your family and learn English. Au pairs from outside the EU must have a special visa which is usually for a year and will restrict what they can do. Although it is not recommended that they be left in charge of pre school children, they may be able to drop off and pick up children from school and help in the school holidays.

An au pair would not normally be approved under the "light touch" scheme unless she was willing to gain a childcare qualification and do a first aid course (see above).

Au pairs must:

• Be given free food and lodging including a room of their own;
• Have two full days off per week.
• Be paid a reasonable weekly allowance (minimum wage legislation does not apply to au pairs, but the Immigration and Nationality Directorate sets down a weekly minimum, currently £55);

Au pairs must not:

• Stay in the UK for more than two years;
• Work more than five hours a day.

To find an au pair you can look in the telephone book for au pair agencies or contact the International Au Pair Agency on +45 33 33 96 00 (Denmark) www.iapa.org.

Registered in home care

Childcare in your home can now be approved under the Childcare Approval Scheme, or "light touch" registration, see above. This will mean that you can claim costs through tax credits, depending on your income, or benefit from the tax relief on childcare vouchers.

For more details call the Childcare Approval scheme on 0845 767 8111.

Employing a carer for your child

Whether you employ someone through an agency or advertise yourself, employing someone is a daunting task. You will have responsibilities towards your employee as would any employer. The first stage of finding the right person for your child is to write a job description. This is a good idea even if you are going through an agency, as it will help you focus on exactly what you want. The job description should set out what you expect the person to do. Do you expect the person to cook? What housework would they be expected to do?

You can use the job description to create a personal profile which you can use to check against potential candidates.

It is useful to put together an application form so that you get all the information you need. This does not need to be complicated, you just type out the questions you need to ask such as details of qualifications, employment history and so on.

You may want to interview candidates alone at first and only introduce them to your child if you feel confident they will be suitable. Think about what questions you want to ask. You will want to ask about their experience with children and why they want the job. You will also want to ask questions specific to your child. For example, if your child is hearing impaired you might want to ask about the candidate's knowledge of British Sign Language.

Always ask for at least two references. These should be checked out. It is wise to telephone the referees as you may pick up on any doubts they have.

You should always ask about gaps in the person's employment and check any qualifications they claim to have. You may want to ask if they are willing to be registered under the "light touch" scheme, see above. If you are paying for the carer with Direct Payments (see below), you may be expected to have them police checked.

Once you have found the right person to look after your child you will need to draw up a contract. Working Families has a standard nanny contract which is available for £5.

You will also have to check you have sufficient insurance and that you are fulfilling your obligations about working time and the minimum wage.

If you need advice on being an employer, call ACAS on 0845 747 47 47.

You will also be responsible for the employee's tax and National Insurance. Help is available from the Inland Revenue New Employer Helpline on 08457 143 143 and there are payroll companies who will do the paperwork for a fee.

Paying for childcare

Childcare can be very expensive. Average costs vary depending on the type of care and where you are in the country. There are ways of getting help to pay for childcare, depending on the age of your child and your circumstances.

Tax Credits

Families using registered childcare may be able to get some of the costs back through Working Tax Credits, depending on their income. Tax Credit rules are complicated and if you want to know about Tax Credits generally then you should look at our Benefits factsheet. The rules for the childcare element alone are as follows:

• Childcare costs can be claimed for children up to the 1st of September following their 15th birthday, or the 1st of September following their 16th birthday if the child is registered blind, or has been taken off the blind register within the last 28 weeks, or you receive Disability Living Allowance for the child. (Working Families is campaigning to have this extended to 18 for children with disabilities to fit in with other rights.)
• The childcare must be registered or approved and not provided by a close relative if in your own home.
• If it is a one-parent household, the parent must work 16 hours or more. If there are two adults, both must work 16 hours or more, unless one is incapacitated, in hospital or in prison.
• The maximum childcare costs taken into account are £175 for one child or £300 for more than one child at 2006/07 rates.
• The maximum award is 80% of the maximum childcare costs.
• If you stop using childcare for more than four weeks, you must tell the Inland Revenue - you will be treated as not using childcare for that time.
• If your average childcare costs change by more than £10 per week for more than four weeks, you must tell the Inland Revenue as there are penalties for not disclosing this.
• The amount you get will depend on your household income.

If you are unsure about what you are entitled to, please ring the Working Families helpline on 0800 013 0313 or the Tax Credit Helpline on 0845 300 3900

Direct Payments

Direct payments are a way of offering more flexibility to disabled people and their families. The scheme originally applied just to adults but has been extended to young people and children under 18. If your child has been assessed as needing a service then instead of your local authority arranging it, you can be given the cost of the care and arrange it yourself.

This is useful for families in many situations such as those on long waiting lists for a service, those who live far away from where services are provided and those who feel they don't have enough control over the services provided.

Direct payments can be used to employ someone to provide the service or to pay for services such as a nursery or out-of-school club. You cannot use them to pay for council run services.

Example

If your child has been assessed as needing 10 hours domiciliary care a week it might be that your local authority can only provide this for two days at five hours a day. If you feel that, for example, two hours a day after school would be better for your family, then you could ask for the cost of the care as a direct payment and employ someone to provide that care in the way you want.

Using Direct Payments to employ someone can seem harder than letting the council arrange care. It is your responsibility to find the right person (who may need background checks), interview, work out the contract and pay the person's tax and National Insurance. Your Social Services department should be able to give you advice and put you in contact with agencies that can help.

The Department of Health produces a helpful booklet called A Parent's Guide to Direct Payments (publication number 31213/A) which is free and which can be ordered on 08701 555 455 or Textphone 08700 102 870.

For more information call Janet on 020 72537243 or see our Childcare for Disabled Children factsheet.

Nursery Education Grants

All three and four year olds are entitled to up to 2 ½ hours of early education per weekday during school term time (33 weeks per year). The local authority pays the grant directly to your nursery. This can be used either to gain a free place at a nursery school or the money can be used towards paying for a private nursery.

Childcare vouchers and workplace schemes

Some employers offer vouchers towards childcare costs to parents, often as a "salary sacrifice" scheme. This means you are paid less cash but given vouchers which can be used in some nurseries. If your childcare is registered or approved, you will not pay Income Tax or National Insurance on up to £55 per week.

If your employer does not offer this, you could suggest they start as it would save them and you money, although you should consider long term implications like the effect on your pension. It will also affect your "average salary" for things like Statutory Maternity Pay. You should also note that childcare vouchers will affect your Tax Credit award. They are generally not recommended for those who receive more than the family element of Child Tax Credit, unless their childcare costs are more than the maximum allowed (see above). The Daycare Trust has detailed factsheets about childcare vouchers for both employers and employees.

New Deal for Lone Parents.

If you are a lone parent who wishes to start work the New Deal for Lone Parents has discretion to offer help with childcare as you look for work or start some kinds of training. Please call 0875 606 2626 or go to your local Jobcentre Plus for more details.

Help for students

The Daycare Trust produces factsheets on help with childcare for students (see below)

Useful numbers

Working Families
1-3 Berry St, London, EC1V 0AA
Telephone: 0800 013 0313
Orderline for factsheets: 020 7490 2414
Waving not drowning project for parents of disabled children: Janet on 020 7253 7243
www.workingfamilies.org.uk
info@workingfamilies.org.uk
Registered Charity No 1099808
Company No 4727690

4children (formally Kids' Clubs Network)
Information for parents including advice on setting up after school clubs
City Reach, 5 Greenwich View Place, London, E14 9NN
Fax: 020 75376012
Telephone: 020 7512 2112
www.4children.org.uk
Info@4Children.org.uk

ACAS
Free advice line giving employment law advice
Telephone: 0845 747 47 47
Minicom:08456 06 16 00
www.acas.org.uk

Childcare Link
Find childcare in your area
Telephone: 08000 96 02 96
www.childcarelink.gov.uk

Council for Awards in Children's Care & Education
Information about qualifications for working in childcare.
Beaufort House, Grosvenor Road, St Albans, Hertfordshire, AL1 3AW
www.cache.org.uk
info@cache.org.uk

Disability Alliance
Information about benefits for disabled people
Universal House, 88-94 Wentworth Street, London, E1 7SA
Fax: 020 7247 8765
Telephone: 020 7247 8776
www.disabilityalliance.org
office.da@dial.pipex.com

HM Revenue and Customs Employer Helpline
Guidance for first time employers
New Employers (NESI): 0845 60 70 143
Established Employers: 08457 143 143

National Childminding Association
Information about finding or becoming a childminder.
NCMA, Royal Court, 81 Tweedy Road, Bromley, Kent BR1 1TG
Telephone: 0845 880 0044
www.ncma.org.uk
info@ncma.org.uk

National Day Nurseries Association
Information about choosing childcare and working in childcare.
Oak House , Woodvale Road, Brighouse, West Yorkshire, HD6 4AB
Fax: 0870 774 4243
Tel: 0870 774 4244
www.ndna.org.uk
info@ndna.org.uk

National Minimum Wage Enquiries
Information about the minimum wage. You can also complain if you are not being paid the minimum wage
National Minimum Wage Enquiries, BP7102, Norham House, Benton Park View, Newcastle upon Tyne, NE98 1ZZ
Telephone: 0845 6000 678
Minicom: 0845 915 3296
Northern Ireland: 0845 6500 207
www.hmrc.gov.uk/nmw

Nursery World
Admiral House, 66-68 East Smithfield, London, E1W 1BX
Telephone: 020 7782 3000
www.nursery-world.co.uk

Ofsted
The body that registers and checks schools and childcare for the under eights
Alexandra House, 33 Kingsway, London, WC2B 6SE
Telephone: 08456 404040
Orderline: 0700 263 7833
www.ofsted.gov.uk
enquiries@ofsted.gov.uk

Professional Association of Nursery Nurses
For information about qualifications for nannies
2 St James' Court, Friar Gate, Derby, DE1 1BT
Telephone: 01332 372337
www.pat.org.uk
hq@pat.org.uk

Tax Credits Helpline
Apply for tax credits, alert the Inland Revenue to a change in circumstances or ask for help in filling out the form.
Telephone: 0845 300 3900
Textphone 0845 608 6000
Northern Ireland 0845 603 2000
Northern Ireland Textphone 0845 607 6078
www.taxcredits.inlandrevenue.gov.uk

The British Association for Early Childhood Education
Information on early years education including leaflets about encouraging young children to learn.
136 Cavell St, London, E1 2JA
Telephone: 020 7539 5400
www.early-education.org.uk
office@early-education.org.uk

The Daycare Trust
Information about childcare including nursery vouchers and help for students
21 St George's Road, London, SE1 6ES
Telephone: 020 7840 3350
www.daycaretrust.org.uk
info@daycaretrust.org.uk

The Immigration and Nationality Directorate
Information on au pairs, and immigration.
Lunar House, 40 Wellesley Rd, Croydon, CR9 2BY
Telephone: 0870 606 7766
minicom 0800 38 98 289
www.ind.homeoffice.gov.uk

The International Au Pair Association
c/o FIYTO, Bredegade 25 H, DK 1260, Copenhagen K, Denmark
Telephone: (+45) 33 17 00 66 (Denmark)
www.iapa.org

The Lady
Advertise for a nanny.
39-40 Bedford St, London, WC2E 9ER
Telephone: 020 7379 4717
www.lady.co.uk

The advice given in this factsheet is accurate at April 2007. It may not be accurate after that date.

Working Families operates a complaints procedure to ensure any complaints are dealt with thoroughly and fairly. If you would like to have details of the procedure or to make a complaint please contact the Chief Executive at Working Families

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