Cost of childcare continues to rise
Janaki Mahadevan
Tuesday, February 8, 2011
The cost of childcare has continued to rise with prices for childminders, nurseries and after-school club provision increasing by 4.8 per cent, according to the Daycare Trust's annual survey.
The statistics compiled from figures submitted by Family Information Services in England, Scotland and Wales, reveal the cost of all forms of childcare has gone up above average wage rises.
The average yearly expenditure for 25 hours' nursery care per week for a child under two stands at £5,028 for parents in England, £5,178 for parents in Scotland and £4,723 in Wales. The average yearly cost of 25 hours' care from a childminder for a child under two stands at £4,670 in England, £4,664 in Scotland and £4,687 in Wales.
Anand Shukla, acting chief executive of the Daycare Trust said: "When parents sit down to calculate their family finances and see childcare costs increasing far faster than their wages, it is no wonder they may think twice about the economic sense of staying in work. These costs are particularly significant given the number of people not receiving pay increases this year, the increase in VAT and rising costs of other household goods.
"These findings add to our concern about the reduction in the childcare element of working tax credit. Once this change comes into place, some families will effectively have an extra £546 a year added to their childcare bill. Yet parents in the UK already spend an average of one third of their net income on childcare costs — more than any other OECD country."
Despite a legal duty on local authorities to ensure there is sufficient childcare in their area, the survey discovered 60 per cent of Family Information Services said parents had reported a lack of available childcare in their area during the last twelve months.
A lack of childcare for children over the age of 12 and those with a disability or special educational needs was also identified.
The trust is now calling for the government to reverse its decision to reduce the proportion of childcare costs covered by the childcare element of the working tax credit and ensure the new universal credit helps families with childcare costs so they are better off when they move into work.
The charity is also asking council to complete their childcare sufficiency assessments thoroughly, using the information gathered to fill gaps in provision in their area.
Government is also being asked to increase the level of subsidy available to childcare providers.
