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Solutions sought as cost of childcare continues to rise

Childcare costs in England and Wales continue to rise above the rate of inflation, according to the Daycare Trust's annual survey of what parents are paying. The average cost for a 50-hour nursery place for a child under two is now 152 per week, at a time when average weekly earnings in England were placed at 447. The increase from 144 last year represents a three percentage point rise above the current rate of inflation.
Childcare costs in England and Wales continue to rise above the rate of inflation, according to the Daycare Trust's annual survey of what parents are paying.

The average cost for a 50-hour nursery place for a child under two is now 152 per week, at a time when average weekly earnings in England were placed at 447. The increase from 144 last year represents a three percentage point rise above the current rate of inflation.

Fees in Wales are also up, with the average under-two's nursery place costing 131 per week.

The lowest nursery costs were found in the Midlands and the lowest childminder costs were in the north-west.

London and the south-east typically had the most expensive levels for childcare, with average costs between 180 and 200 per week.

Conversely, out-of-school costs in inner London were the lowest nationally, thought to be the result of successful funding projects such as the New Opportunities Fund.

Emma Knights, joint chief executive of the Daycare Trust, called on the Government to increase funding for childcare in the forthcoming Comprehensive Spending Review.

'One investment which would make an important difference to parents in the short term would be an extension of the free entitlement to 20 hours per week for 48 weeks per year and for that to cover all two-, three-and four-year-olds,' said Ms Knights. 'Another would be to increase the possible tax credit scheme allowances to 100 per cent from the current 80 per cent.'

However, Purnima Tanuku, chief executive of the National Day Nurseries Association, said that extending the free entitlement before current problems with funding the scheme in the private sector were addressed would only cause further price rises.

Massive gaps continued to be visible in the childcare services provided for disabled children. Almost 70 per cent of parents told Children's Information Services there was a lack of affordable childcare in their area.