The Daycare Trust has found that a typical full-time nursery place for a two-year-old now costs more than 110 a week. This works out at over 5,700 a year, more than an average family with two children spends on housing or food.
Regional variations show that average nursery costs are cheapest in the north-east at just over 90 a week. They peak in London and the south-east, where the cost of a typical nursery place rises to 135 a week, more than 7,000 a year. The survey also reveals that nationally, parents pay almost 90 a week to place a two-year-old child with a childminder, still over 4,500 a year.
The report calls for parents to receive help with childcare costs and stresses the importance of the childcare tax credit, which helps parents on lower incomes. An average tax credit award of 33.48 a week is currently being gained by 124,000 families.
The report also found that less than five per cent of parents get help from their employers towards childcare. Some do receive childcare vouchers which are exempt from National Insurance, while others get tax relief on employer-provided childcare.
Daycare Trust director Stephen Burke said the cost of childcare was beyond many parents' reach. He added, 'More families need to know about the childcare tax credit and how it can help them with costs. The ceilings in childcare tax credit also need to be reviewed - currently only 100 a week childcare costs can be taken into account for one child, so the maximum award is limited to 70 per week. It is critical that parents on lower incomes can afford the cost of a typical nursery, which clearly now exceeds the childcare tax credit ceiling. More help is needed to enable all parents and children to share in the benefits of childcare.' Generous financial support for parents in the first three years of a child's life was also recommended last week by the Childcare Commission (News, 1 February). Anne Longfield, director of Kids' Clubs Network and a Commission member, said, 'The childcare tax credit goes up to 100 a week for one child. But if the parents are living in London the costs become much more.
'Childcare for children under the age of three costs more, so parents also need more support. Good childcare is a legitimate expense so that's why we proposed tax relief for childcare. We would like parents with children aged under three to be given more money in their pockets so they can pay for more childcare or have the option to stay at home.'
