Working parents are struggling as nursery fees rise three times faster than wages
WORKING parents in England with children under five have seen nursery fees rise three times faster than their wages over the past decade.
According to new research from the Trades Union Congress (TUC), nursery fees have risen by a whopping 52 per cent for families with a full-time and a part-time working parent.
In comparison, wages have increased by just 17 per cent over the same period.
Free early education and childcare is available for two-year-olds for families in England who receive certain benefits.
Meanwhile, all three and four-year-olds get between 15 and 30 hours of free childcare a week.
But the TUC warned that despite this government support, families are still having to stump up thousands in nursery fees.
How much does nursery cost?
ACCORDING to the TUC, nursery fees in England are now on average:
- £236 a week for a child under two in nursery, compared to £159 in 2008.
- £232 a week for a child over two in nursery, compared to £149 in 2008.
It said families with a parent working full-time and a parent working part-time who have a three-year-old and a one-year-old face a £4,700 a year childcare costs shortfall.
The situation is even worse for lone parents. Childcare costs for a single mum or dad working full-time have risen seven times faster than earnings.
A single parent working full-time on average earnings has to cover a £6,000 childcare shortfall.
The TUC is now calling for subsidised, affordable childcare from as soon as maternity leave ends.
It said this would enable parents to continue working and means mums don’t have to make a choice between having a family and a career.
What help is available for parents?
CHILDCARE can be a costly business. Here is how you can get help.
- 30 hours free childcare - Parents of three and four-year-olds can apply for 30 hours free childcare a week.
To qualify you must work at least 16 hours a week at the national living or minimum wage and earn less than £100,000 a year. - Tax credits - For children under 20, some families can get help with childcare costs.
- Childcare vouchers - If your employer offers childcare vouchers you can get up to £55 a week in tax and national insurance savings.
You pay for your childcare before your tax contributions are taken out.
This scheme is open to new joiners until October 4, 2018, when it is planned that tax-free childcare will replace the vouchers. - Tax-free childcare - Available to working families and the self-employed, for every £8 you put in the government will add an extra £2.
It also wants more government funding for local authorities to provide nurseries and childcare.
Earlier this year, we reported how many parents are making up for shortfalls on government funding on providing free childcare by upping fees and charging for extras, such as meals, snacks and nappies.
TUC general secretary Frances O’Grady said: "Despite government support families still face eye-watering nursery bills.
"Britain’s cost of living crisis is having a huge impact on working mums and dads.”
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Ellen Broomé, from charity Coram Family and Childcare, added: "We know that high quality childcare boosts children’s outcomes, benefits the economy and allows parents to make genuine choices about work and care.
"But in the last year alone, childcare costs have risen by 7 per cent. Urgent action is needed to make sure all parents are better off working after paying for childcare.”
Children and families minister Nadhim Zahawi commented: "We are spending more than any other government on childcare support - around £6billion a year by 2020.
"As part of this we have doubled our free childcare offer for working parents to 30 hours a week, saving them up to £5,000 a year per child."
All working parents with children up to the age of 12 can also apply for the government's tax-free childcare scheme - here's what you need to know.
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