You are here: News London parents get worst childcare deal in Britain
The difference in the price of childcare between London and the rest of Britain is getting ever more pronounced year on year, according to new research.
The news comes a day before childcare prices and availability for every region in England, Scotland and Wales are published in the annual Childcare Survey by the Family and Childcare Trust.
Nursery prices grew by 2.2 per cent in the capital in the last year, well above the rest of Britain. An average London parent will now pay £2,182 per year more than other parents in Britain for part-time childcare for a child under two.
The price of this type of care is now 35.9 per cent higher in the capital than the rest of the country, compared to 22.9 per cent in 2011, signalling that London prices are pulling away from other regions.
Price rises in London have now increased to such an extent that they undermine Government childcare support to low income families in nine of London’s local authorities.
The problems for parents are exacerbated by huge shortages of childcare, which is one of the reasons why London has the lowest uptake of free early education of anywhere else in England. Just 46 per cent of eligible two year olds take up their free offer in comparison to uptake of 56 per cent across the rest of England.
Even with these eye-watering prices and significant shortages, 13 London local authorities did not do anything to improve gaps in provision – in spite of their obligation to secure sufficient childcare for working parents. The lack of places may jeopardise government plans to extend childcare support from 2017.
Julia Margo, Chief Executive at the Family and Childcare Trust, said:
“While the childcare problems faced by London parents are experienced by families elsewhere in the UK, many of them are much worse in London, with families facing an array of difficulties in accessing affordable, high-quality childcare. “With prices in London continuing to outpace increases across the rest of Britain, the value of childcare support to families will quickly be eroded. The Government needs to review the sufficiency of the support it offers so that childcare does not act as a barrier to work for London families. “It is also vital that the next London mayor takes targeted action to help increase the supply of early education places and ease cost pressures in the capital.”
Julian Foster, Managing Director at Computershare Voucher Services, who sponsor the annual childcare survey, said:
“Childcare represents a huge expense for households across London. When childcare provision is both effective and affordable, we create happier households, empower parents to work and provide better opportunities for children as they grow up. “It is crucial that the industry, third sector and government work together to ensure that good childcare is available to families across the country.”
The Family and Childcare Trust is calling on the Government and incoming London Mayor to:
- Review and integrate the financial support offered through Working Tax Credit, Universal Credit and Tax Free Childcare to make it a simple system for parents.
- Support local authorities to fill gaps in provision through grants to help with providers’ start-up costs and market management guidance.
- Make a childcare place a legal entitlement and strengthen parents’ rights with an admissions code for free early education.
- Take immediate action to address a low uptake of free early education among two and three year olds in some parts of London.
- Make public buildings available to be used as nurseries.
The Family and Childcare Trust’s annual Childcare Survey- plus childcare profiles for each parliamentary constituency in Britain - will be available online from 00.01hrs GMT Wednesday 24 February at http://www.familyandchildcaretrust.org/childcare-survey-2016
Contact: Mark Bou Mansour, Communications and Campaigns Manager. Telephone: 0207 940 7535, mobile: 07538 334 772, email: mark@familyandchildcaretrust.org.
Notes to Editors:
- Uptake of free early education for two year olds – at 46 per cent – was much lower in London than in the rest of England where uptake stood at 58 per cent in January 2015. Uptake among three year olds was 85 per cent in London, compared with 94 per cent nationally. There are also 26 local authorities where at least one in ten three year old children are missing out on free early education.
- Parents on lower incomes can claim 70 per cent of their childcare costs under Working Tax Credit - but this support only applies to costs up to a maximum cap of £175 per week for one child. However in nine London local authorities even part time childcare for an under two exceeds this cap. While the introduction of Universal Credit will increase support to parents by raising the rate of support to 85 per cent the cap is set to remain unchanged at £175.
Methodology:
- The Family and Childcare Trust sent a survey to all local authority Family Information Services in England and Wales, and Children’s Information Services, their equivalent in Scotland.
- Local authorities were asked to provide average prices for 25 and 50 hours of childcare provided by nurseries and childminders, average prices for 15 hours of childcare in an after-school club, and prices charged by childminders who pick up children from school.
- We also asked whether local authorities had enough childcare for working parents, for parents with a disabled child, for parents who work atypical hours, and for specific age groups of children.
- All London local authorities apart from Lewisham replied to the survey.
- The annual Childcare Survey is sponsored by Computershare Voucher Services and Community Playthings.
About the Family and Childcare Trust
The Family and Childcare Trust aims to make the UK a better place for families. We are a leading national family charity in the field of policy, research and advocacy on childcare and family issues, with over 40 years’ experience. Our on-the-ground work with parents and providers informs our research and campaigns. We focus on the early years and childcare because they are crucial to boosting children’s outcomes throughout life and supporting parents to work.
About Computershare Voucher Services
Computershare Voucher Services (CVS) is the UK’s largest dedicated childcare voucher provider, responsible for the administration, management and development of childcare vouchers, an employee benefit available to all eligible working parents. CVS currently works with over 140,000 working parents, more than 15,000 organisations and over 125,000 carers each month. CVS has vast experience of the childcare vouchers industry, reinforced by significant technology enhancements which benefit its diverse customer base, spanning every sector, from some of the UK’s largest corporations to SMEs.
CVS is a founding member of the Childcare Voucher Providers Association (CVPA) which represents childcare voucher providers and sets the benchmark for standards in the industry through its Code of Practice, to ensure carers, parents and employers receive the highest standard of service from childcare voucher providers.
For more information visit: www.computersharevoucherservices.com
About Community Playthings
With a fifty-five year history in manufacturing, Community Playthings produces attractive, durable, wooden furniture and play equipment. Their child-friendly designs support children’s creativity, learning, and play in schools and nurseries across the private, voluntary and public sectors.
For more information, visit www.communityplaythings.co.uk