
The drop in the amount that parents can claim for childcare costs through Working Tax Credit from 80 per cent to 70 per cent is also having an effect.
An analysis by the Daycare Trust of HMRC figures found the average claim for the childcare element of WTC has fallen by more than £10 a week and that 44,000 fewer parents are receiving help for childcare costs through tax credits since the cut ast April.
However, comments on Nursery World's Facebook page reveal the dilemma faced by nurseries, and childminders in particular, who are wary of putting up their fees despite the fact they face soaring costs themselves.
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