The Family and Parenting Institute is urging the Government not to lose sight of the importance of affordable high-quality childcare, ahead of the charity's 'Parent Child 2008' conference in London this week.
Its report, 'Families and the credit crunch', highlights how families who previously felt financially secure are now worried about how they will cope as recession hits.
In an online survey of 5,300 families, the FPI found that 35 per cent said that money worries caused them sleepless nights. Just under half were worried about heating their home (47 per cent), followed by mortgage or rent payments (36 per cent) and food costs (31 per cent).
More than a quarter (27 per cent) said they thought their household income would not be enough to cover the bills in six months' time.
The report calls for a review of the childcare element of the working tax credit and universal provision of free after-school clubs to help parents meet childcare costs.
While some parents said tax credits were a lifeline, others felt trapped in the system and said they would be better off unemployed.
One parent was working 173 hours a month to pay back tax credit overpayments.
Another said, 'Childcare is a real struggle for me. I am going to have to consider going part-time because the Sure Start nursery my children attend will be upping their prices at Christmas. I will end up paying out more than I earn.'
Half of all the respondents said their own parents or in-laws helped out with childcare sometimes.
Three-quarters of parents said they would be cutting back on Christmas presents but agreed that TV advertising fuelled 'pester power' to buy expensive toys. The report urged the Government to address parents' fears about advertising in its review on the commercialisation of childhood.