Long term sick leave with child under 5 - do you h

Hi Debbie 16,
An employer has to make reasonable adjustments for people with disabilities, this would include mental health issues. However, firstly I would check what your daughter's employment contract says, about sick leave. If the employer is a large firm, it is likely there will be generous paid sick leave. Otherwise, Statutory Sick Pay might be payable.
In terms of reas. Adjustments this could be a reduction in hours work load, or different work, all of which are easier in a large firm. In a large firm there will also be a dedicated HR team who can discuss these things and perhaps facilitate a phased return to work if necessary. I think whatever the firm, your daughter should try and speak with the manager or HR to discuss work etc. and adjustments.
If the anxiety was work related, the issues causing that will need to be resolved. If this has been a problem, your daughter should consider making a grievance to complain about this. She may need to take advice from her union rep if any, or speak to eg CAB about this. There is a lot of info about work matters on the ACAS website.
If sick leave paid or unpaid persists, there will come a time now, next month or some months ahead when the employer will decide that he will need to retire your daughter on grounds of health.
If your daughter can not work at all, then she may need to claim Universal Credit. This may be claimable now.

Under UC when caring for a child aged 2, there is an expectation that your daughter would have to prepare to go to work and attend work focused interviews. Your daughter would need to work up 16 hrs a week when your grandchild is 3 to 4 year. old. Up to 85% of child care costs may be refundable.
HOWEVER, the above applies to healthy people. As your daughter is unwell, she may well be able to argue that she has limited capability for work or ltd capability for work related activity. This is basically the same as ESA,( Employment Support Allowance) which was the benefit replaced by UC for new claimants.
So there are a number of options, but I think your daughter needs a frank conversation firstly with her GP about a return to work, and the likelihood or a return, and what could help. Then a similar conversation will need to happen with the manager or HR, to discuss how a return to work could be facilitated if appropriate.
Whilst I appreciate that money is important, your daughter should try not to return to work whilst unwell, as this could be more detrimental to her health.
I hope this helps.
LL26