A survey by the London borough of Camden concluded that the majority of middle- and low-income families in the borough cannot afford the 250 per week average cost of a full-time nursery place.
Out of the 60 families who responded to the survey, 83 per cent said that they did not get help under the childcare element of the Working Tax Credit (WTC). The main reason for this was unemployment, followed closely by salary level.
A report of the findings was published by the Council last week. It said that the childcare element of the WTC is 'not set at a level that meets the majority of costs of childcare in Camden'. As a result, parents are not claiming the WTC and they are not accessing childcare places.
The report called on the Government to consider a 'substantial increase' in the revenue funding it provides to local authorities to subsidise more affordable childcare places.
It said that the WTC should be amended to reflect regional variations, though the problems the survey highlighted could be reflected across the whole of London, and the percentage of costs that WTC pays for should be increased from 70 to 85 per cent.
Denise Freeland, the London Development Agency's senior childcare manager, said that she has been working with the Treasury to consider the issue of low take-up of WTC in the capital. She said, 'We are discussing whether a London weighting should be taken into account, or if the amount towards childcare should be linked to the child's age.' She said that the average cost of childcare in London varied depending on the type of provision and the area it was in.
