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Increase in childcare costs across the UK

Increase in UK childcare cost

Despite the government’s claim that it was increasing funding for free childcare placements, a report has found that the cost of childcare for parents of two-year-olds across the UK is up by 4%. Figures for under-twos are up by 5%, with part-time nursery care costing an average £130+ per week. This is compared to last year, and works out at more than £6,800 per year.

Instead of the expected decrease in costs, and the increased availability of nursery places, Coram have suggested that the rate of increase in the cost of childcare is out of proportion with general inflation. The Consumer Prices Index measure January inflation at 1.8%.

Their survey is based on data from 175 local authorities between November 2019 and January 2020.

It also shows that the cost and availability of childcare can vary significantly depending on the region. One of the most expensive areas is the South East, where the cost of 25 hours of nursery care can amount to some £165.47 per week. In London, the average cost is £182.56.

The Humber is one of the cheapest areas at around £113.76 per week.

However, just 56% of local authorities in England have enough childcare spaces to allow parents to work full-time. This figure is down from 57% in 2019.

The average weekly price for those using an after school club five days a week across the UK is £60.99.

In their report, Children’s charity Coram have said that the childcare system in the UK needs to reformed and simplified.

Last year the Department for Education announced that councils across England would be receiving funding of around £3.6bn for free childcare places. Additionally, since 2017, working parents of three and four-year-olds in England and Wales have been entirled to 30 hours of free childcare a week. In Scotland, parents are entitled to an average of 16 hours of free childcare a week.

But Coram have argued that while support and subsidies are in fact available to many of the affected families, the system is too complicated and therefore prohibitive. This means that families are often missing out on help they are entitled to. They have suggested that among other things it would be helpful if the government increased the maximum amount of childcare costs covered by Universal Credit.

Head of Coram Family and Childcare Claire Harding has said that this would ensure “every parent is better off working after paying for childcare, and every child has access to childcare which supports their learning and development.”

“Investing in childcare support is good for us all because it helps parents to work now, and boosts children’s learning and skills for our future.”

 

 

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