Low-income families face 600 hike in annual childcare bill by 2015

28 November 2011 2 mins read Janaki Mahadevan Early Years

Low-income families will have to find 60 per cent more of their own money to cover childcare in 2015 than in 2006 because of growing costs and reduced government support, a report by the Social Market Foundation has found.

The Parent Trap examined the changing level of financial support and the rising cost of formal childcare between 2006 (the peak of public financial support) and 2015.

"Our analysis shows that for the same amount of childcare a low-income family in 2015 can expect to pay almost £600 [more] per year from their own pockets, compared to 2006," said Ian Mulheirn, director of the Social Market Foundation and co-author of the report.

"For a family on £20,000 per year with typical childcare costs, this will take the proportion of their income spent on childcare to almost eight per cent, up from just 4.8 per cent in 2006. Put into context, this means that the extra expenditure on childcare would wipe out the amount of money the average family currently spends on Christmas."

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