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Childcare availability ‘dramatically drops’ as prices shoot up

Childcare availability ‘dramatically drops’ as prices shoot up
Matt Browning
Written By:
Matt Browning
Posted:
19/03/2024
Updated:
19/03/2024

Families face a national childcare shortage while paying 7% more than they did last year for the support, a charity finds.

Only a third of English councils have sufficient childcare for parents working full time, while the same amount (35%) had adequate support for children under two years old.

There are just 6% of councils who could provide the necessary care for children with disabilities too, which has nosedived by 12% since last year, according to Coram’s annual survey.

Children just beginning secondary school are the second-most likely to miss out on childcare, with only 7% of English councils able to provide sufficient support to them.

Despite the decrease in help for families, prices continue to rise, as they need to fork out an average of £158 per week to cover the costs of a part-time (25 hours per week) nursery place for a child under two years old. The average price to look after a two-year-old in Great Britain is slightly cheaper at £151.72 per week.

Free childcare expansion on the horizon

Meanwhile, there is a large swing in what childcare will cost all over the UK. The most expensive is in inner London, where the same part-time nursery sets families back £218 per week. At the other end of the scale is the East Midlands, where a nursery spot will cost £129.04 per week for children under two and £124.60 for two-year-olds.

The survey comes ahead of a free childcare expansion from the Government, which will roll out in three stages. They are as follows:

  • April 2024: Up to 15 hours for eligible working families in England with a two-year-old.
  • September 2024: Up to 15 hours for eligible working families in England with a child aged between nine and 23 months old.
  • September 2025: Up to 30 hours for eligible working families in England with a child from nine months old up to school age.

Working parents of babies and toddlers can register on 12 May to be eligible for the second phase of the free childcare, effective from this September.

This roll-out will be welcome news for UK households, and Ellen Broomé, managing director of Coram Family and Childcare, described the move as “a potential game-changer” for parents.

Childcare situation is ‘concerning at crucial time’

However, Broomé also has reservations about its implementation and said: “Our findings – with higher costs and dramatic drops in the availability of childcare places – are concerning at this crucial time, showing the scale of the challenge and the very real risks around this policy not living up to parents’ expectations.

“Unless this policy is properly funded and supported, it could have the opposite effect, with families unable to access or afford the childcare they need and the most disadvantaged children set to miss out on this vital boost to their outcomes.”

Broomé added: “The recent additional funding from the Chancellor was welcome but won’t address the long-term systemic challenges of high childcare costs for parents, the workforce recruitment and retention crisis or the lack of availability of places for children with special educational needs and disabilities.”

Confidence in Government roll-out is low

Her concerns are shared by councils too, with less than a third (28%) feeling confident they will be able to meet the demand of providing 15 free hours of childcare for children aged nine months old in September 2024.

Faith falls even further for the September 2025 phase, with just an eighth of councils (12%) feeling confident there will be enough places to cover the 30 hours of free childcare.

Broomé urged the next Government to “commit to reforming our childcare system to make sure all children can access high-quality early-years education and all parents can make meaningful choices about work and care.”

Jackie Leiper, managing director of Scottish Widows, echoes the calls for reform. However, Leiper believes the impact expensive childcare has on women compared to men needs to be addressed, as 37% of women have had no choice but to quit working altogether to cover childcare needs, according to the pension provider’s separate study. That can cost women £77,000 in lost pension funds by the age of 30 years old.

Leiper said: “The fact that childcare costs themselves are rising further is a stark reminder of how detrimental these pressures can be to women’s long-term financial security.

“Reform needs to support women to stay in high-quality employment whilst raising families to prevent long-term detrimental impact to their careers and pensions. There should also be an improved focus on improving childcare access and funding.”