Childcare Cost Survey 2015

The cost of a part-time nursery place for a child under two has increased by an inflation-busting 33 per cent over the course of this Parliament, according to new research by the Family and Childcare Trust. Overall, the cost for all types of childcare for under-fives has risen by at least 27 per cent in the last Parliament.

In its 14th annual childcare costs survey, the charity also reveals that the same nursery place has for the first time broken through the £6,000-a-year barrier, averaging at £115.45 a week across Britain. This represents a rise of 5.1 per cent in just one year. The average cost of part-time care from a childminder has also risen by 4.3 per cent in the last year, and now costs £104.06 per week or £5,411 a year.

And this year, for the first time outside of London, some of the very lowest income parents who claim help with childcare costs through Working Tax Credits will find the maximum amount they can claim – £175 a week – will not cover even their part-time childcare costs, and could leave them out of pocket by a minimum of £52.50 a week.

Stephen Dunmore, chief executive at the Family and Childcare Trust said:

During this Parliament we have welcomed extra support for parents through the new tax free voucher scheme and a commitment to raise the amount of childcare support in Universal Credit.

But, if childcare costs continue to rise at this pace, the benefits of this new financial support to parents will be quickly eroded within the next Parliament.

In spite of several positive initiatives, including more funding for free early education, the childcare system in Britain needs radical reform. In the run-up to the general election this May we want to see all political parties commit to an independent review of childcare. Britain needs a simple system that promotes quality, supports parents and delivers for children.”

As well as an independent review of childcare, the Family and Childcare Trust is calling on any incoming government in the next Parliament to:

  • Merge Universal Credit support for childcare with the tax-free childcare scheme to create a single and fair system.

  • Extend free early education to cover all two year olds and for 48 weeks of the year for all two, three and four year olds.

  • Make early education and childcare a legal entitlement for parents, bringing it in line with a right to a school place.

  • Overhaul the free early education funding formula for three and four year olds to make it more responsive to social factors.

Read our report

Read the full press release here.

Read our blog here.

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