East mum says "well thought out" funding is needed to lower childcare costs

New research shows the cost of 25 hours per week of care for a child under two rose by 7% last year to nearly £160 a week

Published 19th Mar 2024

A mum living in the East is telling us that "well thought out" funding is needed to help lower ballooning childcare costs.

It's after a national charity found the cost of 25 hours per week of care for a child under two rose by 7% last year - to nearly £160 a week.

"Risen astronomically"

Rebecca Wright also campaigns for maternity rights group, 'Pregnant then Screwed':

"I'm finding that provider funding is being cut and they therefore need to pass on the costs to parents. The funding has been cut following the overhaul of the childcare allowance, so it almost seems like robbing Peter to pay Paul.

"Some well-thought investment is needed for the sector, rather than just moving around and re-packaging what's already available for parents.

"I really don't think that anyone can plan or save for childcare fees that can be up to £95 a day. It's what some nurseries are charging as a day rate. They've risen astronomically from around £65.

"There is a lot to be said for those who are having children.

They are the next generation of people that are going to help and support us, so we have to keep the birth-rate up.

"This issue affects all of us, whether we like it or not."

What else did this work show?

The survey from Coram Family and Childcare charity also found there's been an overall drop in childcare places.

It found:

-A total of 34% of English councils reported sufficient childcare places which was a decrease of 14% on the previous year while 35% reported having enough spaces for children under two.

-A drop in childcare places for children with disabilities with 6% reporting sufficient spaces, which is down 12% from 2023.

-Provision had reduced for parents working atypical hours - down seven percentage points - and for families in rural area - down by 14 percentage points.

"The scale of challenge"

Ellen Broome, managing director of Coram Family and Childcare, said: "The new childcare support that is being rolled out from April has the potential to be a game changer for parents up and down the country - many of whom have found themselves facing eye-watering childcare bills and sometimes even locked out of work because of childcare costs.

"Our findings - with higher costs and dramatic drops in availability of childcare places - are concerning at this crucial time, showing the scale of challenge and the very real risks around this policy not living up to parents' expectations.

"Unless this policy is properly funded and supported, it could have the opposite effect, with families unable to access or afford the childcare they need and the most disadvantaged children set to miss out.

"The recent additional funding from the Chancellor was welcome but won't address the long-term systemic challenges of high childcare costs for parents, the workforce recruitment and retention crisis or the lack of availability of places for children with SEND (special educational needs and disabilities).

"Over the next few months, we need the Government to work closely with local authorities and childcare providers to make sure they are supported to deliver for families.

"And in this election year, we are calling on all political parties to commit to reforming our childcare system to make sure all children can access high-quality early years education and all parents can make meaningful choices about work and care."

What's the Government said?

A Department for Education spokeswoman said: "Our largest ever expansion in free childcare is set to save parents using the full 30 hours up to £6,900 per year, tackling the cost pressures parents are currently facing, with the first stage of the rollout beginning in just two weeks.

"We are confident in the strength of our childcare market to deliver further expansion, with our funding rates for the new entitlements independently assessed by the IFS as significantly above market rates, guaranteed further rises in funding for the next two years backed by an estimated £500 million, our national recruitment campaign, and £1,000 cash incentive pilot to encourage new staff into the sector.

"Even before these interventions, early years places and staff had increased in 2023 compared with five years ago, while the number of children aged 0-5 has dropped year on year between 2018 and 2022."

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