Surge in childcare costs

FAMILY-FRIENDLY BENEFITS

The cost of childcare continues to rise well above the rate of inflation, at a time when parents are reporting continued difficulty in finding quality affordable places for their children, says a survey by Daycare Trust, the national childcare campaign, in association with Sodexho Pass.

Key results

The average rise in costs to parents of nursery places is 5.2% -- three and a quarter times the rate of inflation.
This leaves the typical cost of a nursery place for a child under the age of two years up to £141 a week, from £134 last year.
For a child aged over two years, the typical cost in England is £132 -- a 7.3% rise.
Inner London boroughs saw nursery place costs soar by more than 17%, keeping them the highest in the country -- typically £197 for a week's nursery care for a child under the age of two.
A nursery place for an under-two year-old is typically £122 in Scotland and £120 in Wales.
The cost of childminders is highest in the South East, typically £157 for a child under two (full time for a week) and £154 for a child over the age of two. Nationally those figures are £127 and £126 respectively -- 5% up on 2004.

Comments on survey

Stephen Burke, director, Daycare Trust:

"Our survey shows that the majority have difficulty finding the right childcare that is affordable. While the Government is bringing in extended help from April, in the form of larger tax credits and exemptions from tax and NI on childcare vouchers, to help with the costs, availability is still a huge issue. To make childcare available to all there must be significant investment in the childcare workforce, both to ensure there are enough staff and to ensure that they are trained to the highest standards to care for our children."

Nancy Weeden, childcare service manager, Sodexho Pass:

"The good news is that from April 2005, childcare vouchers up to £50 per week become both tax- and NI-exempt. For the first time employers have a chance to implement a family-friendly policy that will make a real financial difference to all employees who pay to have their children looked after while they work. The savings an employee can make will be significant -- as much as £1,066 a year. Employees will understandably want to take advantage of what's on offer and in view of this I cannot emphasise strongly enough the need for all employers of whatever size to familiarise themselves with the new legislation now -- in order to be ready to cope with employee demand for the new benefit in April."

Want to know more?

Title: Annual Survey of the Cost of Childcare, Daycare Trust supported by Sodexho Pass.

Methodology: The figures were compiled from a survey of 137 out of 200 Children's and Childcare Information Services in Great Britain.

Availability: You can read the survey report online at www.daycaretrust.org.uk/article.php?sid=245

Daycare Trust is a national childcare charity, campaigning for "quality affordable accessible childcare for all and raising the voices of children, parents and carers". It advises parents and carers, providers, employers, trade unions and policymakers on childcare issues. Daycare Trust runs a childcare helpline (tel: 020 7840 3350) for parents with access to Language Line interpreters for non-English speakers, open for calls Monday to Friday, 10 am to 5 pm. For more information visit www.daycaretrust.org.uk

Sodexho Pass is an expert in the field of voucher provision operating in 27 countries worldwide. In the UK it runs childcare voucher schemes for both private and public bodies across all industry sectors. Sodexho Pass offers two childcare voucher services: Childcarepass and the newly-launched Childcare Choice aimed at small to medium-sized enterprises. Go to www.sodexhopass.co.uk for more information.

Posted 4 February 2005

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Surge in childcare costs