The vast majority of young families say that their grandparents are their first choice when it comes to looking after their children or other close relatives. If this is a regular occurrence, is paying grandparents for childcare in the UK allowed?

Childcare costs are spiralling and with limited financial help available, 97% of families say that they turn to grandparents or other close relatives for childminding help. This can be picking up and dropping off school age children or looking after a child full-time whilst parents work.

It makes sense that if you are relying heavily on a relative that you pay them for childminding duties but is this legal? What are the rules relating to paying someone as a childminder? Let’s find out more about paying grandparents for childcare here in the UK.

When should you register as a childminder?

You should register as a childminder if you are looking after children who are not close relatives, are doing so for more than two hours a day and are charging for your service.

A professional childminder will also have a DBS check to check they are safe to work with children, hold a paediatric first aid certificate and be inspected by the appropriate body, which is England is OFSTED. You should also consider a childminding course and possibly online childcare courses if you are thinking about registering as a childminder.

What is the definition of a ‘close relative’ when it comes to childminding?

family member getting paid for childcare

 

There is a ruling that says a close relative who looks after a child relative does not have to register as a childminder but could technically charge for the time they look after the child.

A close relative is defined as a grandparent, aunt or uncle. So it would seem that anyone outside of this definition would, in the eyes of the law, register as a childminder although this is not made clear!

Is paying grandparents for childcare in the UK legal?

It is not uncommon for parents to make a payment to a relative who looks after their child on a long-term basis, for example, every day after school or every shift that they work.

How this income is treated is a grey area. Some say that your relative would need to declare this money as income and pay income tax on it be declaring a return. Others say that this is not the case and is a token gesture payment.

It is hard to find any clarity on the situation but payments are ‘token gestures’, e.g. not at the current professional childminder rate. The average rate for 25 hours of childcare a week for a child under 2 is just over £107 per week with full-time care rising to £227 per week.

Can it be seen as ‘expenses’, rather than payment?

For many parents, the costs of childcare are so high that returning to work part or full time is not financially worth it. And this is why parents rely on grandparents and other relatives to care for their children.

There is also the question of suitable childcare arrangements for parents who work shifts and irregular hours. Quite often, grandparents will have grandchildren to stay overnight and take them to school in the morning, whilst their parents work at night.

And then there are the school holidays from the 6-week summer stretch to half and end of term breaks.

It could be argued that the money you give your close relative is to cover expenses, such as food and outings.

Again, providing you are not paying a ‘salary figure’, it could be argued the money is expenses.

But what if a relative wants paying the current childminding rate?

Naturally, grandparents and other relatives may expect the current childminding rate if they are doing the childminding duties. So, since your relative is likely to be taking on the brunt of the childminding, then you should pay the same level of money for a professional childminder with a schedule of activities, play and learning.

Paying grandparents for childcare in the UK?

In the UK, it may be possible for grandparents to be paid for contributing to or looking after their grandchildren full time. This is in recognition of the fact that many grandparents do care for their grandchildren on a full-time basis.

 

If you want to become a childminder, you’ll need to know how to go about setting up your business. Find out the basics of how to become a childminder with our great blog. You can also learn more from our childcare courses.
Being a childminder is a fulfilling career choice. If its something that appeals to you, you may be considering becoming a self-employed childminder, offering to look after children in your own home.

Your local authority

You will need to see what measures your local authority has in place to register childminders in your county. Every authority has a ‘family services’ section, although it may be called something different from one county to another. There may also be different requirements in Wales, Northern Ireland and Scotland too.

Get your paperwork in order

Running your own business usually means some kind of background paperwork that needs to be completed and kept up to date and being a childminder is no different! Online business courses are a great way to introduce yourself to a new skillset.

There are certain key things that you have to have in place before you can formally register with OFSTED. You’ll need to check who inspects childminders if you don’t live in England.

You will need to complete;

How to Set up a Childminding Business

Register with the inspectorate body

In England, you will need to register with OFSTED as a childminder. This is process checks through your paperwork, documentation and whether you provide the stimulating, safe and nurturing environment that young children and babies need in their early years.

There is a growing emphasis on the quality of early years childcare provision as it has been proven with academic studies and research that the better quality learning in these early, formative years, the smaller the gap between children’s learning later in life.

In Wales, it is PACEY who are responsible for inspecting childminders. In Scotland is it the Care Inspectorate and in Northern Ireland, it is the Early Years’ Service. Check their websites for their current requirements.

Get insured

Once you have completed your application to OFSTED or the equivalent body, and successfully passed your inspection, you will be issued with a certificate. This is an important piece of paper, confirming to parents and caregivers that the provision you offer is safe and of the highest quality.

It also shows that you have in place all the necessary measures and basic qualifications such as first aid.

What you now need to do before you open your doors and welcome children into your home, is public liability insurance. This protects you against paying out potentially expensive claims should something happen whilst a child is in your care.

Stay up to date

Being a childminder can be full-on. After a busy day, you will need to stay on top of your paperwork because you could have a drop-in inspection at any time.

We have produced an in-depth guide to anyone considering becoming a childminder. You can find out how to become a childminder. You can also find out more about the skills and qualifications that are useful for childminders by taking a look at our growing range of childminding courses.

Within your professional field, you can become a specialist, offering childcare services with a specific slant to them such as provision for children with disabilities and more.

Being a childminder is a fantastic career choice and one that parents and caregivers rely on heavily. Is it something you plan on doing? Enrol on a childminding course to test the waters.

Childminders will always be in high demand. In this article, we explore whether you can make a living from childminding and how to go about setting up a childminding business.

All parents want the best for their children and when it comes to professional childcare options, their expectations are high. They want a childminder who cares for their child, as well as offering a stimulating and educational environment.

As a childminder, these are heady responsibilities to meet. Traditionally, childminding has been a low-paid job. But as a profession, it is revolutionising itself so that childminders are highly trained, qualified professionals who have the earnings to match.

A profitable business

woman sitting whilst children eat in the background

Even with more people becoming childminders, the demand for high-quality childcare will often outstrip what is available locally. And so, parents are willing to pay to have their child taken care of in the right kind of environment – and for you, as a childminder, that means understanding what parents are looking for and balancing that with the needs of the child as well as statutory and legal obligations too.

Being a childminder can be profitable, with many people enjoying successful careers for many, many years;

Childminder qualifications

There are no formal requisites that childminders should hold a specific qualification, there is an expectation from local authorities – and parents too – that people who choose to offer childminding services will have some kind of qualification in childcare or a related subject.

For this reason, most people will look to childminding courses. These courses will cover how to create a safe environment, as well as examine how children learn and develop. By understanding issues such as this, a childminder can provide a stimulating and educational care setting.

There are also other issues and areas of knowledge that childminders are expected to have. For example, a paediatrics first aid qualification is essential, with most local authorities requiring this as an obligatory part of the registration.

As well as first aid, childminders are also expected to keep up to date with the changes and developments in child protection procedures. As a childminder, you will be expected to have numerous policies and guidelines to which you will abide, reporting possible abuse and neglect is one such responsibility.

DBS Checks + Insurance

As part of this process, childminders will also undergo an extended Disclosure and Barring Service (DBS) check. This check needs to remain current – your local authority will tell you how often they want this check repeating – and you will need to show this to all parents too.

Insurance is essential too so that you are protected should there be accidents and/or injuries. Public liability insurance is a must and some childminders will have specific insurance for themselves, as well as their home or premises.

There are also health and safety requirements for the areas of your home that you intend using for your childminding activities. And as you would expect, there will inspections by the regulatory authority, which differs whether you offer childminding services in England, Wales, Scotland or Northern Ireland.

More childminders are needed!

In England, the latest figures from Ofsted (March 2017) show that there are 43,500 registered childminders, a decrease of 500 since the end of 2016. This is a fall of nearly 25% since August 2012.

There are many reasons why this is the case, including the impact of some recent changes in how childminders can register, more so in England than in other areas of the UK. But what is heartening to see is that the rating of good our outstanding childminders and childcare provision is increasing.

This is, in no small part, down to the quality of childminding courses on offer, including those offered online by us. Isn’t it time you took a second look?