We earned more than £200,000 a year — but struggled to afford childcare

Nicole and Matthew Griffiths struggled to afford childcare for their second daughter (Picture: Matthew & Nicole Griffiths/SWNS) Many people talk of the £100,000 ‘trap’ – or the fact that this high salary doesn’t actually go as far as many might think. Nicole Griffiths, 36, and her husband Matthew, 37, collectively earned more than this, at £205,000. But after they welcomed their second child, they struggled to cover childcare costs, despite their seemingly generous wage packets. Once a parent earns more than £100,000, they no longer qualify for tax-free childcare, which amounts to £2,000 per year. In this situation, children over three only qualify for 15 hours of free childcare per week. Otherwise, the standard for working parents earning under that crucial £100,000 threshold is 30 hours with a child more than nine months. Look beyond the headlines Get a curated list of the most important stories of the weekend every Sunday from our weekend editor Jess Austin. Look beyond the headlines with exclusive articles, emotive interviews and must-read explainers from our expert team of reporters across news, lifestyle and entertainment. Sign up here. The couple had already been paying £1,600 per month for their first daughter to attend nursery, but when they found out they were expecting their second child in 2022, after the initial joy, they felt panic at the costs. ‘We obviously knew we wanted to have another child, and so we were thrilled when we found out,’ Matt said. ‘Until the penny dropped that now it was going to be a few quid short of £40,000 a year in childcare fees for two of them, and I was like, wow, this is now getting completely out of control.’ Ask Metro Use AI to go deeper into the stories you care about – powered by Metro and trusted publications. At the same time, the mortgage payments on their three-bedroom home in Brighton skyrocketed, from £2,100 to £3,300, putting them in a tight spot. Nicole was earning £80,000 working in senior management for a tech company, while Matt was earning £125,000 as chief product officer at an insurance tech firm. They were also earning extra money through dividends from three Airbnb properties kept in their names. They faced the prospect of covering an extra £3,000 per month, as their mortgage went up too (Picture: Matthew & Nicole Griffiths/SWNS) Preparing to welcome their second child, they faced the prospect of covering an extra £3,000 in monthly outgoings, which left them living paycheck to paycheck, with ‘literally nothing left’ by the end of the month. Matt said: ‘It’s like private school fees. That was not what I planned for at all to send a one-year-old to childcare. ‘We struggled to think of how we could afford a second child.’ Matt spent months applying for two senior jobs, which both involved nine stages of interviews, but he soon realised increasing their earnings wasn’t the only answer. Instead, they looked at alternatives. ‘Because every pound you earn in that income tax bracket you basically take home half of, it’s really hard to outearn the problem because you’re paying so much in tax,’ Matt reflected. And so, the couple spent months doing their research, trying to understand how they could actively shave down their costs. They consulted friends, accountants, and government services, but found the ‘expertise didn’t really exist under one roof,’ which made it hugely difficult to identify any form of solution. This isn’t a situation unique to Matt and Nicole, either. There are plenty of other parents, many of whom earn considerably less, who struggle to cover childcare. In the UK, costs for a child under two can be anything from £188.75 to £325.12 per week. In the end, they managed to save £21,495 on childcare costs, which, at first, they reclaimed by making overpayments on their workplace pensions. This allowed them to reclaim their childcare support, worth £16,281, for both of their daughters. Crucially, the workaround allowed them to save money, as eligibility for childcare credits is based on net income, rather than gross salary. And, considering pension payments are deducted from an employee’s payslip, this means the amount hitting their account on payday is lower. They’ve decided to help couples facing a similar situation (Picture: Matthew & Nicole Griffiths/SWNS) After they identified this initial workaround, the couple wanted to help other families facing the same situation. And so, they turned the graft they’d put into their research into a business, which they even quit their jobs for. The Wealthy Parent Guide was designed to help those earning six figures navigate their options and, crucially, save money on childcare costs. Matt said: ‘The average parent that comes to us saves £919 per month on their childcare costs.’ Just as they did, their business model helps parents make changes to pension contributions, as well as identify other financial factors which have an influence on their childcare credits. Elsewhere, Nicole feels as a society, women are encouraged into senior positions, but the childcare system can ‘financially incentivise them to step back.’ Nicole doesn’t want women to be pushed out of the workplace (Picture: Matthew & Nicole Griffiths/SWNS) She said: ‘The higher earner in the household may trigger the loss of the childcare support, but I think it’s very often that if you’ve got one parent earning over £100,000, the lower earner may consider stepping back. ‘Statistically, that’s probably more likely the mum. That is often where the mother’s career does pay the price for the way that the system is set up.’ Matt added: ‘If people in the prime of their careers are going, you know what, I don’t want a bonus. I don’t want a promotion because it just screws up my childcare costs. It’s not worth it. ‘We need to get people incentivised to go out and work. But this whole system for the brightest and most ambitious minds in the prime of their careers is having the opposite effect.’ Do you have a story you’d like to share? Get in touch by emailing MetroLifestyleTeam@metro.co.uk Arrow MORE: I was refused food in hospital because I was formula feeding my baby Arrow MORE: EasyJet to pay for thousands of child passports with new £66.50 discount Arrow MORE: Martin Lewis issues ‘check before it’s too late’ warning to millions of UK homeowners The Sunday Edit Look beyond the headlines with exclusive articles, emotive interviews and must-read explainers from our expert team of reporters across news, lifestyle and entertainment.