Instead of paying childcare providers, parents are using grandparents to save on childcare costs
It is believed that grandparents are saving working parents £16 billion in childcare costs. A report from Insurer ages in partnership with the International Longevity Centre highlights that on average grandparents help working parents out with 8 hours a week of childcare.
Many working parents turn to grandparents to help with childcare; this is to help reduce the costs of childcare. It is often the case that it is not worth parents returning to work after childcare costs are paid. Therefore according to the research two-thirds (65%) of grandparents help with childcare.
Grandparents are now seen as another source of childcare, rather going down the nursery route, this gives parents many benefits, one it helps with childcare costs and two it helps them return to work.
For some grandparents who look after their grandchildren, it can mean they miss out on valuable credits that help with their pensions. However under a new rule once a parent returns to work they can sign a form stating that a grandparent or family member can receive National Insurance (NI) credits.
For some working parents, they are not able to use grandparents as they are still working, leaving the only option is to pay nursery fees or look for a childminder. With the introduction of the 30hrs free childcare scheme, this is aimed at help working parents with childcare cost.