Call to make childcare free for all as nursery bills 'skyrocket'

The TUC wants universal, flexible, high-quality childcare available to all families at the point that paid maternity or parental leave ends.

Childcare costs 

It comes as new analysis by the union body reveals that the cost of childcare for under-twos has increased by nearly £3,000 a year in England in the last decade.

According to the TUC, in 2012, the average full-time nursery bill for a family with a child under two was £11,300. In 2021, this cost had risen to £14,200 – an increase of 26 per cent.

The analysis shows that the East of England and the West Midlands have seen the biggest increase to childcare fees.

In 2012, only two English regions (London and the South-East) had monthly childcare fees of £1,000 or more, but today nurseries in every region, charge, on average, over £1,000 a month, it finds.

The TUC warns that if childcare costs continue to rise at the same rate, parents will be faced with monthly bills of £2,000 a month in some parts of the country in the near future.

It estimates that by 2026, nursery bills will have risen to £2,000 a month in inner London and will reach the same level in the East of England by 2027.

The TUC is now calling on ministers to set out their plans to cut childcare costs, deliver free, quality childcare for all parents, as well as give those that work in childcare an ‘overdue’ pay rise.

It argues that the Government must immediately raise spending on childcare to at least the OECD average of 0.7 per cent of GDP. Currently, the UK spends less than 0.1 per cent of GDP on childcare, the second lowest investment in the OECD.

The TUC is calling on the Government to deliver: 

• Free, high-quality childcare, available to all. This would begin from the point where paid maternity or parental leave ends.  
• Better pay and conditions for the childcare workforce. The TUC believes that this should start with guaranteeing a sector-wide higher minimum wage for the childcare sector, negotiated between unions and employers. 
• A new childcare partnership forum. The forum would bring together unions, Government and employers to work together to set a fair pay agreement for childcare workers. 

On ratios specifically, the TUC warns that plans to reduce the number of adults to children in early years settings would not drive down the costs of childcare, but ‘damage quality’ and risk forcing more staff out of the sector due to ‘unmanageable workloads’.

'We want to see the next Prime Minister recognise the value of childcare.'

TUC general secretary Frances O’Grady said, ‘High-quality childcare should be affordable for all parents. It’s how we keep women in work and close the gender pay gap. 

'But in this cost-of-living emergency, working families are spending more and more of their pay packets on childcare bills, while their wages stagnate.’

Managing director of Coram Family and Childcare Megan Jarvie commented, ‘Childcare is a key part of our country's infrastructure. It enables parents to work and helps to boost young children's outcomes. 

‘But the high costs faced by families mean that it is out of reach for too many families.

‘We want to see the next Prime Minister recognise the value of childcare and make sure that every family can access the high-quality childcare they need.’

The Early Years Alliance pointed to underfunding of nursery places by the Government as to why childcare costs are rising.

Chief executive Neil Leitch said, ‘Let’s be clear: these staggering cost rises are a direct result of the Government’s decision to knowingly underfund the early years sector in England, and proposals to relax ratios will do little to address this issue.  

‘How many more families need to be priced out the sector before the government listens, takes action and comes up with a long-term plan, and realistic funding for the early years sector?’

Jonathan Broadbery, NDNA’s Director of Policy and Communications, commented, 'Like so many challenges in the early years sector, it comes down to a lack of Government support. 

'We have to value our children’s first five years. High-quality early education and care cannot be done on the cheap but it should be affordable and accessible for all children because it gives them the best possible start in life. Low levels of Government investment mean that providers go out of business while parents end up paying much larger sums for their childcare.'