You are here: Home - Household Bills - News -

Parents missing out on government’s free childcare options

Written by:
Around two-thirds of working parents are missing out on government-sponsored childcare options, according to the Killik & Co Real Cost of Childcare report.

It showed that 69% of those interviewed were not using the 15 hours free childcare for 3 and 4-year-olds, and none were currently using the additional 15 hours introduced in September. A fifth (21%) plan to do so in future.

This could see parents missing out on as much as £8,000 of free childcare per year. The savings can be accessed through an online account, available through the government’s website. There have been teething problems with the system, but most of the problems have now been rectified.

40% of couples use an existing Childcare Vouchers scheme, but this will close to new applicants from April 2018. Childcare Vouchers can be used in conjunction with the 30 hours free childcare scheme highlighted above.

Svenja Keller, head of wealth planning at Killik & Co. said: “We are now living in an economic environment where the cost of childcare is influencing parents’ decision on whether or not they choose to have more children…Parents could make significant savings towards their goals through financial planning, regular savings and by making use of financial incentives.”

The survey reveals many parents take an ad-hoc approach to childcare – over 71% of respondents depend on extended family as the main source of childcare, with 65% of help specifically from the child’s grandparents. 40% of parents have cut back their working hours in the last five years due to the cost of childcare.

London emerged as the most expensive place for childcare with parents spending on average £152 per week compared to the lowest of £95 in the North East.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week