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Childcare costs rising faster than wages, says TUC

By Rachel Lawler
 
Research from the TUC has shown that the cost of childcare is rising four times faster than wages in England.
 
The Labour union says that the average cost of care for a one-year-old child rose 48% between 2008 and 2016, with wages only increasing 12% in the same period.
 
In some areas, childcare costs are rising faster than in others 鈥 with childcare costs rising 7.4 times faster than pay in London and 4.8 times more quickly than pay in the east midlands.
 
Single parents
The TUC says that this is putting increasing pressure on parents, particularly single parents who are said to spend an average of 21% of their wages on childcare while working full-time.
 
Those households with one parent working full-time and another part-time are said to spend an average of 14% of their income on childcare 鈥 an increase from 11% in 2008. Parents who both work full-time spend an average of 11% of their income on childcare 鈥 up from 8% in 2008.
 
Increased funding
Frances O鈥橤rady, general secretary of the TUC, commented: 鈥淣early a million working parents of one-year-old kids have eye-watering childcare bills. There is a real gap in childcare support for one-year-olds until government assistance kicks in at age two.鈥
 
The TUC is asking for more government funding for local authorities to spend on childcare and early years settings.
 
The union is also is calling for the government to implement universal, free childcare for all families from the end of maternity leave onwards to help younger parents stay in work.
 
30-hours
Currently, some parents of two-year-olds are entitled to 15-hours a week of funded childcare and the government has recently introduced 30-hours of childcare for three- and four-year-olds in some working families.
 
However, the 30-hours offer has been criticised by some providers who say the government funding does not cover the cost of each place.
 
Alliance concerns
Neil Leitch, chief executive of the Alliance, welcomed the call for additional funding. He said: 鈥淲e know that rising childcare costs remain a significant challenge for families across the country, and that this is particularly true of those parents with younger children, who do not qualify for government funding and attract higher fees as a result of stricter staff: child ratios.鈥
 
Neil added: 鈥淯nfortunately, this financial pressure is only likely to get worse with the rollout of the 30-hour offer for three- and four-year-olds, as struggling providers are forced to try and recoup the losses they make as a result of government underfunding elsewhere, which often means increasing the cost of care for under-twos.鈥
 
鈥淭he TUC is completely right to call on the government to increase childcare funding and of course, the private and voluntary sector is absolutely vital to this. Ultimately, unless the government invests what is needed into the early years sector, it is those working families it has promised to support who will end up paying the price,鈥 Neil warned.
 
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