A survey published this week this week by Save the Children and Daycare Trust has highlighted the impact of high childcare costs on families.

The key findings were-
* Cost is a major barrier preventing parents on the lowest incomes from accessing childcare
* The high cost of childcare has a significant impact on most families, but for families in severe poverty the impact is particularly extreme
* Difficulties accessing childcare are significantly affecting the ability of parents in severe poverty to work, train or study
* The high cost of childcare means that work is not paying for the poorest families

Separation or divorce has a major impact on family finances since couples now face the costs of two households rather than one. The cost of childcare is a significant outgoing for most families and there may be worries whether the cost of childcare can be afforded following separation or divorce. So what financial help is available?

Tax Credits - For those working more than 16 hours a week help is available with up to 70% of the cost of childcare provided the care is registered or approved. Currently, if you pay childcare for:
* one child, the maximum childcare cost you can claim is £175 a week
* two or more children, the maximum cost you can claim is £300 a week

This means that the maximum help you can get for your childcare is:
* £122.50 a week for one child
* £210 a week for two or more children

But you won’t necessarily get the full £122.50 or £210 a week – the actual amount you get will depend on your income.

Child Support - Couples can agree a figure for child maintenance and this can be included in a court order following divorce. In the absence of agreement an application has to be made to the child support agency. Broadly, the non-resident parent should pay 15% of their net income for one child, 20% for two and 25% for three or more. This is subject to adjustment where the child/ren stays overnight with the non-resident parent or the non-resident has other children living with them. The power of the court to award child maintenance is limited.

Spousal Maintenance - Where the income of the party is insufficient to meet their needs (which could include child care costs) and the other party has disposable income available after meeting their own needs the court can award maintenance. The court does have a duty to consider in each case whether a “clean break” can be achieved i.e. no maintenance but in some cases a clean break may not be appropriate.

There are therefore resources available to a party to boost their income to enable them to meet their financial needs following divorce or separation including child care costs.