Families paying premium for August holidays

Package holidays abroad increase in cost by more than a third from mid-July to mid-August, according to a study which found one price rise of 85 per cent.

The figures were announced by Santander banking group as another report revealed that almost a third of parents claim they cannot afford to go on holiday this summer.

A survey by poverty charity Elizabeth Finn Care also showed more than a third of families feared they would be in debt by the end of the summer holidays.

The figures for holiday prices abroad show an average dip in cost of 33 per cent from their August peak into September while holidays in the UK drop by more than 50 per cent in price.

The survey found the cost of a week-long trip for a family of four to the Portuguese Algarve can rise from just over 2,000 in mid-July to around 3,800 in mid-August before dipping to around 2,200 in September.

The price of a caravan holiday in Presthaven Sands, North Wales, rises from 399 in mid-July to 698 in mid-August before falling to 467 in September.

The lowest August rises were found on holidays to the Spanish island of Majorca, where costs rose only 16 per cent in August compared with July.

Santander Cards director Emma Roberts said: "Massively inflated premiums are an unfortunate inevitability for families going away during the school summer holidays.

"With prices increasing by up to 85 per cent for those going abroad and 75 per cent for those taking a break in the UK, it's not going to be cheap for families hoping to get away this summer.

"While school holiday premiums may be punitive, however, for Britons going abroad this summer, there are other things they can do to make their holiday money go further. Holidaymakers spending abroad should make sure they always use a card that doesn't charge them a foreign exchange fee for converting transactions made in a foreign currency."

Last month it was revealed parents taking children out of lessons for family holidays during term time was the biggest reason for unauthorised absences in the region's secondary schools as they seek avoid the extra cost of summer trips.

Latest Government figures show Yorkshire had the highest truancy rates in the country at secondary schools, with 1.49 per cent of half days being missed through unauthorised absence during the last autumn term – worse than any other English region.

Elizabeth Finn Care is also warning that parents are prepared to go in debt in order to pay for summer holidays.

Chief executive Matthew Sykes said: "Some 16 per cent of parents say they will use their credit card to cover the cost of the summer holidays, 14 per cent will rely on their overdraft and eight per cent will even feel the need to borrow from family members.

"Worryingly, one per cent will even borrow the money from a doorstep lender offering 'quick fix' loans and risk owing huge amount of interest."

The charity's figures are based on a sample survey of 4,598 adults, 876 of whom were parents with children aged four to 18, carried out last month.

Extra cost of high summer

Increases in package deals from July to August

n A week in Cyprus rises from 1,997 to 2,556.

n A week in Malaga rises from 2,825 to 3,773

n A week in Majorca rises from 5,016 to 5,827

n A week in the Algarve rises from 2,087 to 3,809

n A week at Centreparcs, Longleat, rises from 1,278 to 1,418

n A week at Butlins, Skegness, rises from 847 to 873.