I think a lot of people either don't go back to work until children start school or pay out at least one of the partners earnings on childcare and do lots of financial squeezing elsewhere, and as someone said, subsidise their going back to work through savings. Our childcare bill is a part time teachers take home pay per month. There are tax credits but these are decreasing and the childcare element is minimal in comparison anyway. There is still the universal nursery grant for 3 and 4 year olds but there are few full day places in state nurseries and in private nurseries you still have to pay over and above that anyway. My partner and I are working even though we would be better off if we probably both didn't and even if one of us didn't but we want to preserve our jobs and pensions in these difficult times. We are looking forward to the day when the last of our children goes to school and we save £1400 per month!