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.

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.