Childcare costs surge at over double the rate of inflation

A new survey has revealed that parents in the UK are paying five per cent more for childcare for under-twos than they were one year ago.

The Coram Family and Childcare’s 20th annual Childcare Survey found that parents have been hit by childcare costs rising well ahead of inflation, and are now paying an average of £131.61 per week, or over £6,800 per year, for a part-time nursery place.

Children's charity Coram also claimed that parents are facing a ‘postcode lottery’ with childcare prices and availability varying significantly across the country. The most expensive regions in the UK are unsurprisingly London and the South East, where the cost of a part-time nursery place for a child under two is £165.47 and £144.90 per week respectively. However, in Yorkshire and Humberside the cost is £113.76.

Availability is also highlighted as an increasing problem, with 56 per cent of local authorities in England having enough childcare for parents working full-time, compared to 57 per cent in 2019. Some families face even bigger gaps, as fewer than one in five local authorities in England have enough childcare available for children aged 12-14, children with disabilities and parents working outside regular office hours.

The Childcare Survey 2020 recommends that the government reform Universal Credit so it doesn’t lock parents out of work and regularly review the funding rate for free early years entitlements to make sure that they meet the cost of delivering high quality childcare. Ministers are also encouraged to extend the 30 hours free childcare for three and four year olds in England and Wales to families where parents are in training, to help parents get better jobs.

Claire Harding, head of Coram Family and Childcare, said: “Good childcare is essential: it enables parents to work and boosts children’s learning. But for far too many families in the UK, it just isn’t working. Recent government investment is welcome, but many families still face crippling costs, especially in the period from the end of parental leave to when a child turns three. There are seven different types of childcare support depending on families’ individual circumstances, and many parents find it difficult just to find out what’s available to them.

“Investing in childcare supports is good for us all because it helps parents to work now, and boosts children’s learning and skills for our future. We’re calling on government to reform and simplify the childcare system so every parent is better off working after paying for childcare, and every child has access to childcare which supports their learning and development.”