Childminder’s earnings to increase: Government funding changes could mean £60k/year

Would you believe me if I told you that a childminder in England could soon earn as much as £60k every year, if not more? Well, with the changes set to commence in 2024, it’s certainly possible.

Ah, childminding. The chance to impart your knowledge and help a child to grow and develop. Also the chance to fill your home with a child’s laughter, which your husband loves. Really, he does…

For those not tuned into childcare news, a significant government announcement may have slipped under your radar. In a bid to boost childcare availability, they ramped up funding for childcare providers back in April 2024.

How much do childminders earn at the moment?

A childminder can charge however much they like, but most will earn in the region of £5 to £6 per hour, per child. This is based mainly on the government’s free childcare scheme.

Eligible parents currently receive 15 hours of free childcare each week if they have a two-year-old and 30 hours for three- and four-year-olds. In September 2024, eligible parents with children aged nine months and over will also be entitled to 15 hours free each week.

Although the amount a care provider receives varies between regions, it’s around £5.50 per hour for three and four year olds and £10 per hour for two year olds..

So, as a childminder who has three children to look after, they could be earning anything between £16 per hour and £30 per hour.

However, this has the potential to increase once the new changes come in.

How much is the new funding?

This is where it becomes slightly complicated. The amount of funding a childminder will receive is based on three factors:

• The region you’re located
• The age of the child
• How much your local authority decides to take

Unsurprisingly, funding rates in London tend to be the highest (Westminster set at £16.21 for two-year-olds), with the Midlands the lowest (Rutland £9.45). The rates can be found here.

When it comes to age, children under 2 receive the highest rates, followed by two-year-olds and then three to fours.

All of this funding comes from central government and passed to local authorities. However, the authorities are allowed to keep a percentage of the funding before passing it on to childcare providers.

For example, in Kent, the funding for under twos is £11.01. After the authority takes its share, a childcare provider will receive £10.26. For two-year-olds, childcare givers will receive £7.55 (the authority gets £8.10) and for three to fours, £5.16 (out of £5.75).

How much can a childminder earn from the new rates?

Let’s look at the best possible scenario, using the Kent rates as an example.

If a childminder has three children under the age of two (which is the recommended maximum), they will earn £30.78 per hour. For an eight-hour day, that’s £246.24. And if they were to do this five days per week, that works out to a weekly pay of £1,231.20.

Now, if the childminder takes four weeks of holiday in a year, their annual wage would be £59,097.60.

But that’s not all. Childminders can look after six children under the age of eight, which means there is a potential to earn much more per hour. Although guidance recommends only three children should be under school age, a savvy childminder could be earning as much as £80k in a year.

Sounds promising, right? But remember, most parents only get 15 funded hours weekly. To fill those hours, a childminder might need at least eight under-twos, which means a lot of juggling.

But what does the future hold?

Receiving over £10 per hour, per child is pretty impressive. But what will a childminder do when a child reaches two? They’ll effectively have to take a pay cut of almost £3 per hour. And it gets even worse when that child turns three.

What would you prefer to do – earn £10.26 or £5.16 per hour? Of course, there’s no contest.

So, will childminders accept a lower rate? Or will they ask parents to top up the money they’re missing out on? I can’t blame childminders if they do, and I can’t blame parents for being unhappy about it. But with childcare places being relatively scarce, is there much parents can do?

I’m sure we will find out in the near future.

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