Posted on March 6, 2008 in latest news
Ofsted, Britain’s office for Standards in Education has announced Childminders, Daycare centers and Nurseries must be registered with Ostfed and the registration fee is likely to rise up to 2150% in the next three years. This hike in the registration fee may compel the Nurseries to hike their childcare fee.
The DCSF, Department for Children, schools and Families has also consulted the Ostfed to raise the salary of Childminders too. Since the registration fee with Ostfed is likely to increase from £15 to £103 from September.
A recent survey by the Daycare Trust shows that the typical cost of a nursery place for a child under two this year is £159 a week, compared with average earnings of £457. Average childminding costs are £144 a week for under twos and £142 for children aged two and over. Child benefit is currently £18.10 a week for the eldest child and £12.10 for each additional child.
However there is little relief to offset some of the expense. Childcare vouchers, which are available from some employers, are free from tax and National Insurance for the first £55 worth taken each week (£243 a month). For a basic rate taxpayer taking the maximum £55 of vouchers each week, this would save £962 a year tax - for a higher rate taxpayer, it is £1,195.
Both parents can claim vouchers, so up to £110 of the weekly cost of care can be covered, and the total tax relief is £2,390. Childminders and nurseries will take vouchers. However, only a tiny proportion of parents have signed up - just 2% of working parents.
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