Childcare Costs 'Hit Value of Work'

Spiralling childcare costs mean that for many families "it simply does not pay to work'', a major report has warned. It suggests that despite heavy Government spending, childcare prices have continued to soar in recent years. The cost of sending a toddler to nursery part-time has risen by around a third over the last five years, with parents now forced to fork out £6,000 a year on average. In general, prices have continued to increase at levels above the rate of inflation, the report reveals. The findings are contained in the Family and Childcare Trust's latest annual survey of childcare costs, which is based on information gathered from local council family or children's information services in England, Wales and Scotland. Each authority was asked to give the cost of 25 hours and 50 hours of childcare as provided by nurseries and childminders. They were also asked to give figures on the average cost of 15 hours' childcare in an after-school club, or for a childminder picking youngsters up from school. The survey found that across Britain, it now costs around £115.45 on average to send a child aged under two to nursery for 25 hours a week - a total of £6,003 per year. This is the first time that these costs have broken through this barrier, the trust said. It is a 5.1% increase on last year, the survey found. When population distribution is taken into account, the price of a part-time nursery place for under-twos has risen by 32.8% over the last Parliament. The cost of part-time care by a childminder for a toddler is also up by 4.3% on last year, an average of £104.06 per week, or £5,411 a year. "Over the last five years, while there have been deep cuts to other public services, the coalition Government has increased spending on childcare,'' the report said. "But despite this welcome investment, this year's survey finds childcare prices have continued to increase and the gaps in provision remain unfilled. "The reality is that for too many families it simply does not pay to work.'' The survey also shows that across Britain part-time nursery prices for a child aged two and over have risen by 4.1% to £109.83 per week on average, while a childminder for this age group is up 2.5% to £103.04. A Department for Education spokesman said: "We understand that the cost of childcare can be an issue for many parents, but this report only relates to the prices parents pay after they receive the Government's offer of 15 hours of free childcare. "It therefore neglects the record amount of fully funded childcare we are giving - savings worth a maximum of almost £9,000 per child. Based on the FCT's own figures, our free entitlement will save the average eligible family £2,500 per year for each child. Tax-free childcare will also give 1.9 million families an extra £2,000 per year. "We are pleased the report acknowledges the significant steps we have already taken to increase funding in the early years and in particular that over the course of this parliament we have increased funding from £2 billion to £3 billion a year.''