UK parents face highest childcare costs
Couples face an average annual childcare bill of £17,488, placing them at the top of the table. In contrast to other OECD countries (The Organisation for Economic Co-operation and Development), parents in Hungary pay the least, at £903 a year.
But when it comes to single parent households and their childcare bill, those in Ireland pay the most – £10,050 – while Portuguese parents pay the least at £604. The UK ranks in 14th place at £2,007 a year.
However, the analysis by RIFT Tax Refunds reveals that Hungary is the most financially straining place for couples to raise a family, as the average annual income after tax and childcare is the equivalent of £21,972.
In comparison, Austria’s parents are thriving financially, as two-parent earner households are left with an average £52,747 after tax and childcare. Here, parents earn £18,493 more than the average income of two-parent earners in the UK (£34,254).
Luxembourg is the easiest place financially to raise a family as a single parent, with their annual income after tax and childcare costs equating to £28,608 – £5,106 more than the UK average of £23,502.
Bradley Post, managing director at RIFT, said: “It’s interesting to see that countries with the highest income don’t necessarily fair better when tax and childcare costs are taken into account.
“Our research found that the UK has the highest childcare costs for couples but, certain tax benefits appear to ease the financial strain for single parent families.”