You are here: News Families face rising tide of childcare costs as prices rise again
Parents now pay an average of £127 per week, or over £6,600 per year, for just a part time nursery place, according to new research from Coram Family and Childcare. The Childcare Survey 2019 – the 19th annual survey – finds prices have risen by 3 per cent in the last year.
Prices also vary significantly across the country. In Inner London – the most expensive region in the UK – the price of a part time nursery place for a child under two is £175 per week, or £9,100 per year, compared to an average £108 per week in Yorkshire and Humberside, or £5,600 per year.
Even if they could afford it, many parents will struggle to find the childcare they need. In England, only just over half of local areas have enough childcare for parents working full time. Some families will face even bigger gaps – less than a quarter of local areas have enough for disabled children and parents working outside the usual 9 to 5.
Most parents will be able to get some support with paying for their childcare, including from two new schemes introduced in 2017 – 30 hours funded childcare for three and four year olds with working parents in England, and Tax Free Childcare across the UK.
Coram Family and Childcare asked local authorities what impact the 30 hours funded childcare has had on their local childcare market. While most say either that there has been no impact or that they don’t know:
- One in four local authorities (26 per cent) report that 30 hours is pushing up childcare prices for 3 and 4 year olds outside funded entitlements
- One in three local authorities (36 per cent) report that 30 hours is having a negative impact on the financial sustainability of childcare settings
- One in four local authorities (28 per cent) think that 30 hours will have a positive impact in future on the quality of early education and childcare
While many families welcome this support with childcare costs, others may be missing out on the help that’s available because the system is so complex. There are seven different ways families in England can get support – all with different eligibility criteria.
Some Government support has failed to keep up with childcare price inflation: in 94 per cent of local authorities, a full time nursery place for a child under two is now more expensive than the maximum costs supported under Universal Credit and Working Tax Credit. Families in these areas will find that they may end up worse off working, or working more hours.
Megan Jarvie, Head of Coram Family and Childcare, said:
“Childcare is every bit as vital as schools, healthcare or transport: it supports parents to work, provides our economy with a reliable workforce and boosts children’s outcomes. But too many parents remain locked out of work by high childcare costs and low availability, and too many children miss out on high quality childcare, and the benefits to their life-chances that come with it.
“Recent Government investment is welcome, but as prices continue to rise, families remain at risk of getting left behind. For many parents, making work pay is an uphill struggle. The Government needs to streamline the current maze of childcare support schemes so that families can understand what they are entitled to and access the childcare they need. We need a simple and responsive childcare system that makes sure every parent is better off working and childcare quality is high enough to boost children’s outcomes throughout life.”
Contact: Megan Jarvie, telephone: 020 7239 7536, mobile: 07538 334 722, email: press@coramfamilyandchildcare.org.uk or megan.jarvie@coramfamilyandchildcare.org.uk.
Notes to Editor:
- The average price for a part time (25 hours) nursery place is Britain is £124 per week, 4 per cent higher than in 2018.
- Childcare prices per week for part time childcare (25 hours) in England, Wales and Scotland:
- Parents can get support with their childcare costs throughout Britain through Working Tax Credits, Universal Credit, Childcare Vouchers and Tax Free Childcare. England, Scotland and Wales also each have several different schemes offering funded childcare to some two, three and four year olds. See the full report for further information.
- The Tax Free Childcare scheme pays £2 for every £8 parents pay for childcare, up to a maximum of £2000 per child per year.
- The 30 hours extended entitlement rolled out in 2017 in England, providing parents of three and four year olds who are each working a minimum of 16 hours a week an additional 15 hours per week during term time of funded childcare above the universal 15 hours of funded childcare that all parents of three and four year olds are entitled to.
About Coram Family and Childcare
Coram Family and Childcare works to make the UK a better place for families by bringing together what we learn from our on the ground parent-led programmes and our research to campaign for solutions that parents want and need. We focus on childcare and early years to make a difference to families’ lives now and in the long term. Before August 2018, we were known as the Family and Childcare Trust.
Latest news
Childcare entitlement expansion sees childcare costs for under-threes in England more than halve, whilst prices in Scotland and Wales continue to rise
20 March
Working parents of children under three in England now pay less than half of last year’s cost...
Families facing holiday childcare costs of up to £1,000 this summer, whilst shortages continue to grow
19 July 2024
Holiday childcare costs in Great Britain have risen by 6% since last summer, with working...
Our Manifesto
27/06/2024
Now is the time for reform. Our Manifesto sets out the problems facing the early years sector...
Councils concerned about shortages of places ahead of next phase of childcare expansion
27/06/2024
Councils across England have raised concerns about having enough places to meet demand,...
Response to the Conservatives' childcare plan
21/06/2024
In response to the Conservatives' manifesto on early years and childcare, Lydia Hodges,...