Childcare prices rise in line with inflation for first time in eight years
For the first time in eight years, average childcare prices have risen only in line with inflation throughout England, the Family and Childcare Trust’s Childcare Survey 2016 has revealed.
The price of sending a child under two to nursery part-time (25 hours) has increased by 1.1% since 2015, and now stands at £6,072 per year, the study claims.
“We warmly welcome the news that childcare costs have risen in line with inflation, a clear reflection of the sector’s commitment to deliver quality but affordable childcare to families despite the financial pressures they themselves continue to face,” said Neil Leitch, chief executive at the Pre-school Learning Alliance. “It is, however, extremely concerning that local councils are increasingly struggling to provide sufficient funded places. This is a problem that will only worsen with the roll-out of the 30-hour scheme - many providers have warned that they simply will not be able to deliver the extended scheme, not only due to lack of funding, but also a lack of available places.”
The poorest parents receive help with their childcare costs through Working Tax Credit, but there is a maximum cap on the money they can get, and further findings revealed that there are 11 local authorities where the average cost of part-time childcare exceeds this cap. This means that the poorest working parents are coughing up approximately £4,240 per year out of their own pocket.
“While we welcome the recent promise of increased investment into the sector, the problem of insufficient capacity is one that the government simply cannot continue to dismiss,” Leitch added. “Parents were promised quality, affordable, accessible childcare - the government must work with, not against, the sector if it is to deliver on this promise.”