Charities issue jobs alert over childcare costs rise

Poorer families may be stopped from working because of the rocketing costs of childcare, two charities have warned.

Save the Children and the Daycare Trust said childcare costs in the UK are among the highest in Europe and they have launched the biggest consultation ever on the issue to try to prove the impact of the costs,

It is hoped the findings will put pressure on the Government to reverse its recent reduction in the amount of childcare costs covered by working tax credit.

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Sally Copley, the head of UK policy at Save the Children, said: “Childcare is so expensive it’s becoming a luxury that only families earning a very good wage can comfortably afford.

“For families on low incomes they simply won’t earn enough to cover their childcare bill as well as living costs, effectively pricing the poorest families out of work.

“We hope this survey will reveal the impact of childcare costs on Britain’s families so the Government can better understand the barrier such costs create.”

The charities said the cut to the amount of childcare costs covered by working tax credit has left many families on low incomes with an extra £546 a year added to their childcare bill.

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Anand Shukla, acting chief executive of the Daycare Trust, said they had anecdotal evidence that many parents were struggling, but hoped the survey would map the extent of the problem and provide irrefutable evidence to help their campaign.

“Our research shows that childcare costs have risen every year for the last 10 years,” he said. “We are urging all parents to complete this survey and support us to campaign for affordable, high-quality childcare for all.”

The charities believe that families are being forced to cut back on household essentials because of the rising costs.

The Daycare Trust’s annual survey found average costs of £177 per week for a full-time nursery position for a child under two in the UK, which the charities say is prohibitively high for families living in severe poverty, with an annual income below £12,000 (£230 a week).

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Research from the Organisation for Economic Co-operation and Development (OECD) last month put the UK among the countries with the most expensive childcare costs in the world, accounting for 28 per cent of the average net income for a two-earner household.

Only Switzerland and the US had higher figures, while the average was 13 per cent.

The consultation comes after last week the Save the Children annual State of the World’s Mothers report, which rates countries based on the well-being of mothers and children, ranked the UK just 23rd in its children’s index.

The ranking places the UK in the bottom half of the developed countries group.

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The report ranks developed countries according to three main factors — pre-primary enrolment, secondary school enrolment, as well as under-five mortality rate.

Justin Forsyth, Save the Children’s chief executive, said he was particularly concerned about the number of children enrolled in pre-primary education — just 81 per cent compared to 100 per cent in countries such as France, Germany and Netherlands.

“We know that pre-school nursery or playgroup access helps all children, but especially the poorest,” he said. “It is a national embarrassment that the UK lags so far behind other countries of a similar size and wealth.”

Key findings of daycare trust survey

Key findings of the tenth annual childcare costs survey from Daycare Trust, the national childcare campaign, include:

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The cost of a nursery place for a child of two or over in England has increased by 4.8 per cent since last year.

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.

Costs varied considerably between regions and within regions.