Early years costs have rapidly outstripped inflation since 2010, Labour analysis reveals

Feb 20, 2024

by Jess Gibson

Labour has unveiled data analysis showing that early education and childcare costs have increased beyond the rate of inflation by over a third since 2010.  

According to the analysis, the average cost of a part-time nursery place in 2024 is £146-a-week, compared to £82-a-week in 2010 – an 80% cost increase. This equates to costs exceeding £5,500-a-year for part-time early years place during term-time, rising by £2,400 since 2010.

The data produced by Labour also shows that:

the cost of a full-time nursery place has increased by over £70 per week since 2017.
in 2023, the monthly cost of a full-time nursery place was £283.95 per week, or around £9,000 a year for term-time places.
the UK is the third most expensive country for early education in the world for average-earning couples.

The analysis comes alongside repeated warnings from early years experts that the sector lacks the resources to deliver plans for the expansion of funded hours, with an estimated 100,000 additional staff required to meet the full 30-hours pledge.

Labour has commissioned an Early Years Review that aims to set out ways to improve and ensure early education provision is readily available across of the country, with the review being chaired by the former chief inspector of �°��ϲʹ��, Sir David Bell.

Commenting, Bridget Phillipson MP, Labour's Shadow Education Secretary, said:  "Families are forking out thousands of pounds for childcare, all the while being sold a shoddy plan by a Conservative Government that hasn't the first clue of how to deliver it. 

"Families deserve so much better, which is why Labour has commissioned a full, expert-led early years review to examine how we expand access to the flexible childcare that meets families' needs without breaking their finances. 

"The choice couldn't be starker. A clapped-out Tory Government that has failed families for 14 years, or a Labour Party that is ready to reform childcare so it’s accessible for families right across the country."

Neil Leitch, CEO of the Early Years Alliance, said: “It comes as absolutely no surprise that that the cost of early education and childcare has risen a third faster than inflation over the last 14 years. 

“We know that nurseries, pre-schools and childminders have been doing their best to deliver early years care and education that is both high quality and affordable, but years of severe underfunding has meant that many have had no choice but to increase costs just to keep their doors open.  

“While recent funding increases for younger children are a step in the right direction, rates for three- and four-year-olds continue to fall way below delivery costs, particularly in light of recent increases in the national minimum and living wage – and this is putting unsustainable pressure on early years providers already struggling to stay afloat. Unless government commits to ensuring that funding levels across all age groups are adequate not only today, but in the long term as provider costs continue to rise, the situation will only get worse. 

“With early years providers set to become even more reliant on government funding as a source of income once the new extended offers are rolled out, it is absolutely crucial that the government takes urgent action to tackle the current early years crisis. This means investing what’s needed to ensure that providers can deliver the affordable, accessible provision that parents need, and that every child – regardless of their family’s income or circumstances – can benefit from quality early years care and education.”

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