Cost of childcare rising above the rate of inflation
By Rachel Lawler
The cost of childcare for children under two has risen 5% in the past year 鈥 more than double the rate of inflation, according to a new .
According to the survey, parents are now paying an average of 拢131.61 a week or more than 拢6,800 a year for a part-time nursery place.
Post-code lottery
The also highlighted regional differences in the cost of childcare, with the most expensive found in London and the south east of England. The average cost of a part-time nursery place for a child under two is 拢165.47 in London, comparted to 拢113.76 in Yorkshire and Humberside.
Coram Family and Childcare has called on the government to regularly review funding rates for its childcare offers to ensure that they meet the cost of delivery and extend the 30 hours offer to parents in training.
It has also called for the early years pupil premium to be doubled and for the underspend on tax-free childcare to be reallocated to other parts of the childcare system, with a focus on the most disadvantaged children.
Simplied system
Claire Harding, head of Coram Family and Childcare, said: 鈥淚nvesting in childcare supports is good for us all because it helps parents to work now, and boosts children鈥檚 learning and skills for our future. We鈥檙e calling on Government to reform and simplify the childcare system so every parent is better off working after paying for childcare, and every child has access to childcare which supports their learning and development.鈥
Increased fees
Neil Leitch, chief executive of the Alliance, said: "The sector has long warned that the growing childcare funding shortfall was likely to lead to increased costs for parents 鈥 and especially those with younger children who aren't eligible for government schemes - as struggling early years providers are forced to increase fees in order to plug an ever-widening funding gap.
"Every year, the cost of delivering childcare places gets more and more expensive, and yet government funding has consistently failed to keep up. In April, nurseries, pre-schools and childminders across England will see their staffing costs increase hugely as a result of national living and minimum wages rises of more than 6% - but the biggest increase in funding any provider is likely to see is 2%, and that's on the back of years of stagnant funding.
"Ministers cannot continue to ignore the impact that chronic childcare underfunding is having on both the early years sector and the chidren and families it promised to support. As such, with both the Budget and Spending Review on the horizon, we urge the government to commit to ensuring that 'free childcare' schemes are adequately funded, both now and in the future. Neither providers nor parents should have to pay for a pledge that the government chose to make."
Tulip Siddiq, shadow early years minister, commented: 鈥淭he government鈥檚 failure to provide enough free and affordable childcare is making it more difficult for some parents to work and locking women out of the labour market, as costs surge twice as fast as inflation.
鈥淚t is deeply concerning that there are still not enough childcare places in over half of local authorities. Parents are struggling to get the childcare they need, and they face a postcode lottery with the availability and cost. Families are paying the price for the Tories鈥 chronic underfunding of early years. The Government must increase the amount of free childcare available for 2, 3 and 4 year olds to 30 hours, and ensure that any additional childcare hours are genuinely affordable.鈥
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