5 ways to slash childcare costs

A quarter of parents are in debt because of childcare costs, according to a survey.

Research carried out by Daycare Trust and Save the Children also found that 4 in 10 parents say their childcare costs as much as their rent or mortgage.

We all know that childcare costs can quickly mount up. When we asked on Facebook how much you rely on childcare, we got a mixed response. While some of you are able to look after your kids yourself, others were struggling to afford childcare, like Leigh De Guelle, who said: 'My childcare costs me £361 per week for my 2 boys to attend nursery. That equals just under £19,000 a year!'

To help you save money on childcare, we've teamed up with our friends at Lovemoney to bring you some top tips keep the costs of your childcare as low as possible.

Friends and family

Perhaps the most obvious childcare route is to get any willing (and available) family members or friends to look after your children. But if you are going to do this, you need to be careful.

Under the Childcare Act, anyone looking after your child for more than two hours a day before 6pm (or after 2am), or for more than 14 days a year, must be registered as a childminder. Under guidelines, this means the childminder must complete a criminal record check, learn first aid, take a childcare course, and pay an annual fee of £103 to Ofsted. If the care is taking place outside the child's home, the carer will also have to be registered.

While this doesn't apply to close relatives of children - such as grandparents, siblings, aunts or uncles - it does apply to your next-door neighbour or your best friend.

One final point to note is that if you're part of a babysitting circle, you shouldn't need to register as a childminder because most babysitting takes place after 6pm. However, if you regularly babysit before 6pm, you will need to be registered. Babysitting should also be carried out in the child's own home. Similarly, sleepovers would be exempt, unless they occurred at the same address more than 14 times in a year.

Tax credits

9 out of 10 families with children qualify for tax credits - there are 2 types, working tax credit and child tax credit. Working tax credit is based on the hours you work, while child tax credit is available if you are responsible for a child who lives with you (even if you don't work).

How much you'll get depends on things like how many children you have living with you, whether you live with a partner and how much you work.

Use the government's Tax Credits Calculator to find out how much you can get.

Childcare vouchers

Childcare vouchers can save you money as you pay for childcare out of your income before tax and national insurance. You need to be offered the vouchers through your employer, but lots of companies are signed up.

However, claiming childcare vouchers can impact on your tax credits - so it's worth using this childcare vouchers and tax credit calculator from the government's website to find out whether you'd benefit more from childcare vouchers of tax credits.

Nanny sharing

Hiring your own 'Mary Poppins' to look after your kids at home can do some serious damage to your bank balance. But thanks to websites such as nannyshare.co.uk and thenannysharers.co.uk you can now share a nanny with another family!

These websites allow you to search for families in your area that are also looking for childcare. Once you've done that all you need to do is hire a nanny and split the costs. It's that simple!

Holiday clubs

School holidays always come round quickly, so if you're looking for childcare during these holidays, it's well worth checking to see whether there are any holiday clubs at the school itself, or at local leisure centres or churches.

Some schools will also hold after-school clubs during term time for working parents who can't pick up their kids at 3.30pm on the dot. To find out more about holiday schemes in your area, check out the Directgov website.

Finally, don't forget to check out Lovemoney's Cut the cost of having a baby guide for more helpful tips on cutting the cost of having kids!

Where to next?

- goodtoknow's guide to choosing childcare
- How to save money on kids stuff
- Mum's guide to making money at home