Context: Jay and Kay are a couple with two young children, Mae, aged 9 months and Faye, aged 2. Kay has been on maternit

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Context: Jay and Kay are a couple with
two young children, Mae, aged 9 months and Faye, aged 2. Kay has
been on maternity leave and is due to go back to work full time in
the local library. Jay is employed full time in a clay workshop.
Both parents are in their mid-thirties and live in Grays, Essex.
They are looking into arranging childcare once Kay starts work
again.
Both children could attend a local nursery full time nearby from
Monday to Friday, at a cost of £528 per week for both. Kay also
receives child benefit, equating to £1,827.80 per year.
Question: 2.1 Jay has
the option to work flexibly by halving his hours from 40 to 20 for
the next three years. Under this arrangement his monthly gross pay
will also halve to £772.
Jay says that if he takes this option, his financial sacrifice
might be more than just the £772 per month in lost income over this
three-year period. Identify two factors that might cause Jay to
have a much larger financial loss over his lifetime if he takes
this option of going part-time. (4 marks)