TUC warns that early years costs could rise to £2,000 a month by 2026
By Rachel Lawler
The TUC has warned that the cost of early years care for a child under two could rise to £2,000 a month by 2026, if costs continue to rise at current rates.
Working with Coram Family and Childcare, the union said that early years costs in England have risen by nearly £3,000 a year since 2013 – up 26% from £11,285 a year to £14,226 a year in 2021.
Previously, average fees were only above £1,000 a month in three regions of England, but now this is the case for the country as a whole.
In response, the TUC is calling for “a new deal for childcare and early years” to ensure that all children get the best start in life.
The union is asking the government for:
- universal, flexible high-quality early years care, available to all at the point at which paid maternity or parental leave ends
- a new deal for the early years workforce, starting with a new minimum wage for the sector
- a new social partnership, bringing together unions, government and employers to agree a fair wage for the sector
Neil Leitch, CEO of the Alliance, commented: “Now more than ever the rising cost of early education is putting an enormous strain on families across the country and sadly, as TUC’s analysis shows, with the cost-of-living crisis the situation is going to get worse before it gets better.”
“Every family should be able to afford early education, and early educators are doing all they can to make this happen, but when faced with years of severe underfunding and rising costs, many are left with no option but to increase fees just to stay afloat.
“Research conducted by the Alliance earlier this year found that an overwhelming majority of providers said the funding they receive for so-called ‘free childcare’ places is less than the cost of delivering them. Even settings that received funding increases have warned that it won’t be enough to cover delivery costs.
“Let’s be clear: these staggering cost rises are a direct result of the government’s decision to knowingly underfund the early years sector in England, and proposals to relax ratios will do little to address this issue.
“How many more families need to be priced out the sector before the government listens, takes action and comes up with a long-term plan, and realistic funding for the early years sector?”