| Parents pick up the tab
Childcare costs have spiralled to £6000 a year per child. The Daycare Trust surveys the field A typical full-time nursery place for a two-year-old now costs over £110 a week – more than £5,700 a year. When the last survey was carried out in 1997, a typical nursery place cost £80 per week. The increase means that childcare accounts for a bigger share of the family income than housing or food. In London and the southeast the situation is worse, with the cost of a typical nursery place now £135 a week (over £7000 a year). In some areas, it’s much worse. These are the findings of a national survey published by Daycare Trust. Parents on lower incomes can’t afford the cost of a typical nursery place, which now exceeds the childcare tax credit ceiling of £70.00 per week. Costs for a childminder, for many parents the more flexible and affordable option, are also out of range. To look after a two-year-old, childminders charge, on average, almost £90 a week – still over £4,500 a year.
Regional costs for childcare in England, 2001:
Financial help for childcare is limited According to a MORI survey less than 5% of parents get help from their employers towards childcare costs. Some receive childcare vouchers, which are exempt from National Insurance while others get tax relief on childcare provided by their employer. Parents on lower incomes (up to £22,000 for one child, up to £30,000 for two children) can get help towards childcare costs through the working families tax credit. This amounts to a maximum of £70 for one child and £105 for two children per week towards childcare costs. Stephen Burke, Director of Daycare Trust, says: ‘This survey shows the sacrifices some parents make to ensure their child has access to quality childcare. But for many others, the cost is simply beyond their reach. More families need to know about the childcare tax credit and how it can help them. The ceilings for this benefit also need to be reviewed – currently only £100 a week childcare costs can be taken into account for one child, so the maximum award is currently limited to £70 a week. It’s critical that the ceiling be raised or removed completely. Employers should also do more to help working parents with childcare costs. At a time when we are close to full employment in many parts of the country, it would enable them to be more competitive in recruiting and retaining the best staff.’ To find out about childcare in your area, see the Childcare Link website which gives details of what’s available and what it will cost. Daycare Trust runs a childcare helpline for parents: 020 7739 2866 from Monday to Friday, 10am–5pm. You can also see the Daycare Trust website. |