Childcare feels pinch of cost-of-living crisis

Across the 50-minute speech, Rishi Sunak failed to mention children and young people once and referenced families just a handful of times. The statement was billed as containing measures to alleviate the worst effects of the cost-of-living crisis. Yet children’s charities concluded there was little support for the poorest families, prompting some to question whether the government realises how fragile household finances are at the lowest end of the income ladder.

Providers of early years services are already preparing for tough times ahead. Rising costs for running a childcare setting mean providers are having to ask parents to pay more. Latest research by Coram Family and Childcare shows some families now spend a third of their income on childcare. But for those families that rely on government-funded early education alone, particularly those in receipt of the two-year-old entitlement, paying top-ups is unlikely to be an option.