Childcare costs now exceeding mortgage payments.

Research from the Family and Childcare trust reveals that childcare costs now exceed mortgage payments for many families.

The burden that these childcare costs place on many families is huge. Not only does it threaten the financial wellbeing of the family, but it also damages the wider economy by forcing parents out of work as they simply cannot afford to work and pay childcare any longer.

Childcare vouchers can offer some relief for many working parents. A salary sacrifice scheme, childcare vouchers can help make work a more viable option.

There is currently a government childcare consultation underway to determine how these childcare vouchers will be offered after the election in 2015. At the moment, childcare vouchers are exempt from tax and National Insurance contributions, and vouchers offered by employers can save each parent up to £933 a year – a potential £1866 yearly saving for a family of four. That’s a lot of money.

In the meantime, while the government make their decision, you can still claim childcare vouchers in their current form for children up to the age of 15. Parents who sign up for vouchers before autumn 2015 will have the option to stay on the current scheme even when the system is revamped.

I have used childcare vouchers myself, and they really do make a difference. That little bit of money saved on the high costs of childcare can be put towards other everyday expenses such as food, fuel bills and petrol. As they say, every penny really does count.

Do you struggle with the daily cost of childcare? Have you chosen not to go back to work because of childcare fees?