How Much Does a Child Minder Make?

The salary of a child minder will vary from one person to the other. Before you decide to become a child minder, you have to bear in mind that you’ll be working self-employed from your home. That’s going to require you to drum up a business plan, get registered with OFSTED, pay your taxes and keep a record of your expenses.

As a guideline, you can expect that a third of your earnings are going to go on your expenses.

The remainder of your salary is then going to be taxable. The other thing that’s going to affect your income is the space you have around your home.

How Much Does a Child Minder Make?

Whilst the child-minding ratio can be 6:1 where you can care for up to 6 children, it’s not every child minder that is registered for that amount. For children under the age of 2, you’re required to have 3.5 square metres of space per child.

Over the age of two, that’s reduced to 2.3 square metres.

Depending on the space in your home, you have allocated for child minding, you can find that you’re limited to the amount of children you can look after at the one time. This includes your own children too.

The other thing to factor in is the children you look after, who aren’t with you full-time.

For the bulk of your work, you’ll probably find that you’ll only have 2 or 3 children in your care full-time. The remainder of your work will be made up with school runs. The hour before and the hour after school. This can add a fair amount onto your wages as you could find that with limited space, you can care for more older children than those who are under the age of 5.

The expenses to factor in

As you’ll be working self employed, you’re going to have to keep records of your expenses. These are deductable by the tax office, as they’re necessary for your line of work. You’ll also have to factor these into the rates you charge your clients per child, so you know you’ll be profitable.

The following list will give you a guideline of some expenses you’ll have to factor into your rates.

  • Toys, games, books, interactive learning aids etc
  • Safety equipment such as safety gates, smoke alarms, radiator covers, fire extinguishers
  • Insurance – you need to have business liability insurance for your home and your car if you use your own car for picking up or dropping the kids off, or even taking them out trips.
  • Advertising fees
  • Food and drink
  • Nappies, baby wipes, cotton wool etc
  • Toiletries
  • Cleaning equipment
  • First aid kit
  • Aprons
  • Cupboard locks

Some items there are only going to be applicable when you first start up, such as your safety gates and cupboard locks. Others such as your food, drink, and toiletries are going to be ongoing expenses you need to cover.

Since you’re working from home, you’ll need to have adequate business insurance in place. Should you be doing the school runs in your own vehicle, you’ll also need business insurance on the car too. Both the fuel and the vehicle insurance will be applicable for tax relief though.

Working out your salary

Once you’ve got to grips with the books, and know how much you need to earn, combined with how many children you’re eventually registered to care for, you can start to work out your hourly rates to charge, per child.

You will need to know how many children you can care for at any given time.

To put a bit of caution on your expected salary, assume that you’re only registered to care for 3 children, rather than the maximum of 6. If you were to need a salary of £20’000 per annum, then you’d need to factor that into an hourly rate first.

For working a 40-hour week, over the year, your billed working hours combine to a total of 2080 hours. £20000 / 2080 hours = £9.62 per hour Once you know that you can then divide that hourly rate between the total number of children you’re registered to look after. For 3 children, full-time, you’d divide your £9.62 per hour by the 3, for an hourly rate of £3.20 per child.

The typical rate for a child minder can vary anywhere from £2.50 per hour, to £5.50 per hour.

It’s dependent on how many children you can care for in your home, therefore, shooting for a 20k salary, puts your rates in the middle, although it will vary from one area to the next. You can do a bit of research in your own area to find out the going rates that child minders are charging.

Additional benefits you can expect

Child minders working from home, often have their own children to care for. In those situations, the financial benefits are actually far more than meets the eye.

When you factor in that you’re working from home, the expenses you can claim tax relief on, for stuff you’d be buying anyway, combined with the savings you’ll have if you’re watching your own children…there’s actually more to be made in savings. For many, the low income that child minders have isn’t really an issue.

They get to do a job they love, and since you can claim tax relief on your rent, (if you pay that), council tax, electricity rates, gas, food, drink, toiletries and everything else, you can find that you’ll be saving quite a bit of money by working from home, doing a job you love.