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Why is childcare so expensive and what help is available?

Mar 9,2023 1:50 am

By Lucy GilderBBC News

The cost-of-living crisis has highlighted how expensive childcare is in the UK.

Chancellor Jeremy Hunt is facing calls to provide further support for parents.

What free childcare is available?

Three and four-year-olds are entitled to some free childcare provision throughout the UK, with different schemes in operation in, and.

It needs to be " approved childcare" meaning the provider has to be officially registered, and meet the.

In England, all three and four-year-olds are entitled to 15 hours of free childcare per week in term time, or 38 weeks a year. The Free hours can be used in some private nurseries or in state-run preschools.

Children of working parents who meet are entitled to 30 free hours per week.

Two-year-olds in England are also eligible for 15 hours of free childcare under certain circumstances, for example if The Family receives Universal Credit.

Parents whose use their free hours in private nurseries may still have to pay for.

What other help is available?

Under the, the government pays £2 into an account for every £8 The Family contributes, up to a value of £2,000 per child per year, or £4,000 for disabled children.

The Money can be be used for approved childcare including childminders, nurseries, nannies, and after-school clubs. Parents can use this scheme alongside free childcare hours if they qualify for both.

Grandparents and other Family Members who look after young relatives in the UK may also be eligible for extra national insurance credits under the scheme. This can boost their state pension.

Eligible families in England can also claim for children aged 16 and under.

This is worth £21. 80 per week for The First child and £14. 45 per week for additional children.

However, - which limits the total amount of benefits that some working-age people can receive - means some families who are entitled to other state help as well may not get the full amount they are entitled to.

Separately, if either or both parents' total taxable income is over £50,000, may reduce the value of their payments. If either partner earns over £60,000, then they won't quality for any child benefit.

The charities and offer benefits calculators which let you check your situation.

How expensive is childcare across the UK?

The average cost of full-time nursery (50 hours a week) for a child aged under two in Britain is nearly £15,000 a year, according to figures collected by The Charity Coram. The equivalent care from a childminder costs nearly £13,000 a year.

Coram says average costs have risen by 5. 9% in the Last Year .

Research found that that part-time nursery fees (25 Hours a week) for a child aged under two in the UK had gone up by 44% since 2010 - an increase of over £2,000 a year.

In a 62% of respondents said the cost of childcare was the same or More Than the cost of their rent or mortgage.

That figure rose to 73% for Single Parents , and parents who work full-time.

The Organisation for Economic Co-operation and Development (OECD) says the UK is the third most expensive member country for childcare, behind Switzerland and New Zealand .

Its are based on A Family with Two Children aged two and three attending nursery for at least 40 hours a week, and take into account the different types of state support available.

Why is childcare so expensive in the UK?

Wages are a significant part of the overall bill, according to The Institute for Fiscal Studies (IFS), especially because of the UK's relatively tight " carer-to-child" ratios.

For children aged three and over in the UK, there must usually be one carer for every eight children.

The ratio for under-twos is one to three.

In England, Wales and Northern Ireland there must be one carer for every four children aged two.

The government is proposing, As Is already the case in Scotland.

It believes this could save parents up to 15%, about £40 a week for A Family paying £265 per week for 50 hours of nursery care.

Sweden, in contrast, which heavily subsidises childcare costs, has and is among the countries with The The least expensive childcare in The World .

A 2022 by The Department For Education found that the average starting salary for nursery staff in England is just £14,000. It also reported an annual turnover rate of 16%.

How do childcare costs affect women?

Researchers say the lack of affordable childcare forces many women to work part-time, or leave the workforce entirely.

There are no official figures on how many women no longer work because of childcare costs, but from The Office for National Statistics (ONS) shows that about 1. 5 million women don't work due to caring responsibilities.

Pregnant then Screwed's of More Than 27,000 UK parents reported that 43% of mothers said the cost of childcare had made them consider leaving their job. Two-fifths said they worked fewer hours than they wanted.

The Women 's Budget Group - a network of women's organisations, policy experts and Academics -

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Source of news: bbc.com

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