With rising childcare costs, cuts to tax credits and the high cost of living - does it pay to be a working mum

Rising childcare costs, cuts to tax credits and the high cost of living are stretching family budgets to the limit.

Many working mums could be forced out of work as the rising cost of childcare outstrips wage rises.

The average cost of a part-time nursery place for an under-two is over £100 a week - up by six per cent last year, according to a survey by the Daycare Trust charity.

And nurseries in south-east, including Essex, and London are the most expensive, with a top price of £300 a week for a part-time place.

Compare this to the average wages increase of just 0.3 per cent and it’s clear why families struggle to make ends meet.

Sarah Horne, 32, from Steeple View, Basildon, felt that it was important to go back to work for herself and her daughter Sophie.

She now has a part-time job as an administrator working five days a week from 9am to 2pm.

Her daughter Sophie, two, goes to nursery three days a week and is looked after by Sarah’s mum two days a week.

Sarah says: "For me it has been worthwhile to go back to work because I like to feel like I am going out and providing for the family and being a role model for Sophie.

"Also, I think Sophie benefits from childcare and interacting with other children. She was shy when she first started and now she is a lot more confident."

The choice to go back to work has been a financial balancing act for Sarah and her husband Simon.

She says: "Although I finish at 2pm we still have to pay for the full day at nursery. This means the bulk of my wages goes on childcare and we have noticed the cost going up making it more of a stretch for us financially.

"It is hard for parents because it is expensive but childcare isn’t something you want to scrimp on - you want qualified professionals looking after your child."

Things are set to get worse for working families from 6 April when new child tax credits are introduced.

One-child families with an income of over £26,000 face losing their tax credits, while families with two children will be allowed an income of around £32,200 before their child tax credits are cut, compared to the current threshold of £41,300.

The minimum amount of hours parents can work before they are eligible for working tax credits will increase from 16 to 24 - meaning many families will then reach the maximum thresholds of earning.

Sarah says: "We got a letter in the post to tell us we are no longer eligible for child tax credit which I need to phone and check. This will make it more of a strain for us and will have to tighten our belt even more from now on."

Danielle Layland, 33, from Grange Road, Tiptree, set up her own printing business Originals Created 4u so she could fit in working hours around her son Benjamin, 4.

She says: "I run a children’s art printing business and I try to have my working hours in and around when Benjamin is sleeping."

Danielle moved to the UK year ago after living in the states for 13 years. She decided to moved in with her dad to save money and topped up the 15 hours free childcare so Benjamin had three full days and she could focus on setting up the business.

She says: "It was a lot harder when Benjamin was at pre-school and I was setting up the business but now working for myself has worked out a lot better.

"As a single parent I can’t afford for my son to go to breakfast club and after school club so I need to be around for him during the day and fit work around his schedule.

Now Danielle can see the light at the end of the tunnel.

"As Benjamin gets older I am finding it is a little easier to juggle work and looking after him. But my priority will also be my son and work will always work around him."

There is some reprieve for parents as from April 2012, Essex County Council will be expanded 15 hours free childcare and early learning provision each week to include two year olds as well as the current policy for children aged three and four.

This entitlement is intended to reach children at most disadvantage, and therefore applications are subject to meeting set criteria.

An Essex County Council spokesperson said:"Research for the Department of Education shows that young children benefit from participating in high quality childcare and early education provision. The commitment of Government to extend the free early education entitlement to two year olds also reflects the proven benefits of being able to access this support.

"However, we do appreciate that the cost of childcare can be a challenge for families, and we would encourage them to use the Family Information Service, provided by Essex County Council, which will not only help them in their search for childcare but can also signpost them to help with the associated costs, where that is available."

Kelly Buckley, journalist and mum to sons Herbie and Oscar, talks about her juggling act with work and family life. "...IT always seems to be a constant worry, weighing up child care costs against my work wage. For me, my two sons are both now in primary school, but when they were in pre-school, it was quite a massive financial outgoing every month, even though as a single parent who receives tax credits, I was entitled to a percentage of help then. I’m fortunate in the way my company has allowed me to work some of my days around school hours. Also my children’s father works nights, so he can have them after school if necessary. But there have been occasions where his shifts change, or I have to work late, and then I have to pay for two children to be in after school club or with a child minder. School holidays are always a constant worry too. If my children’s father’s work situation changed, or if he moved away, or if I decided to start life with a new partner, combined with the changes set to take place in April, it could mean massive reductions of what I would be entitled to, against my income. There is always a great deal of weighing up to do with regards whether it pays to work. For me, I see my job as a career which I care a great deal about, and I wouldn’t want to give it up. For other people, who may not enjoy their line of work so much, I can easily see why they take the decision to not bother at all."

Some good news for parents in April: In April 2012 Essex County Council will be launching a brand new online facility which will enable parents to look for childcare using various search criteria such as postcode and type of childcare. They will be able to refine their search and also access the information day or night - so at a time most convenient for them. The online childcare search will complement the existing telephone-based Family Information Service, which provides information on childcare provision to public enquirers from across the county. This is a freephone service available on 0800 055 6874 or via email at fis@essex.gov.uk