We have some of the most expensive childcare in Europe.

The average cost of a full-time nursery place for a child up to the age of 2 is in excess of £14,000 per year and more in some areas. Working families currently qualify for tax-free childcare for up to £500 per quarter. Nursery prices are rising meaning in most areas this covers less than 3 days.

Everyone is aware that the cost of living is rocketing. Recently, the government have proposed relaxing the ratios to help reduce the cost of nursery. I do not believe that this is safe and is likely to cause more stress amongst nursery workers who may choose to leave a profession that is poorly paid and already struggling to recruit.

Our economic system is now geared towards having both parents in work simply to pay the bills, particularly in areas with high housing costs. A lot of parents already have no choice but to sacrifice time with their young children. Understandably in the current climate, the nursery my son attends has just had a mid-year price increase making a full-time place of £1,389 per month or £16,668 annually. This is average for my area and is only reduced by £2,000 under the current tax-free system.

For families who do not have help from friends or family, the cost of nursery is usually greater than their housing cost. Latest figures show housing in the UK has also increased by an average of 9.8% in the previous year.

This is not sustainable.

Reducing the financial burden would give more families a choice in how to approach childcare. Where parents drop out of the workplace due to unaffordable childcare, this falls almost entirely upon women who are already more likely to be the lower earner and does nothing to address the gap in equal pay and progression for women who wish to have a career. 

Please help working families by removing the £500 cap to allow tax-free childcare on the full nursery bill.

Sources:

• https://www.daynurseries.co.uk/advice/childcare-costs-how-much-do-you-pay-in-the-uk
• https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/housepriceindex/march2022