News

Parents pay as nurseries' bills rise

Rising rents and the soaring cost of gas and electricity bills have been blamed for the rise in nursery fees over the past year, as a Daycare Trust survey reveals that the cost of a nursery place for a child over two is now more than 8,000 a year.

Childcare costs have risen by 5 per cent in the past 12 months, against the 3.1 per cent inflation rate.

The average cost of a nursery place in inner London for a child over two has risen by 15 per cent, with typical costs ranging from £173 to £226 a week. Parents can now expect to pay an average of £8,684 a year for a child under two.

However, costs have remained stable and even decreased in other areas in England.

A shortage of childcare for under-fives was reported by 27 per cent of local authorities' family information services.

According to the Trust, factors that are having a knock-on effect on fees are the rising cost of premises as local authorities put up their rents and high utility bills that have forced up overheads for early years settings.

Jose Tsuchihashi, branch co-ordinator for the Pre-School Learning Alliance in Hammersmith and Fulham, said rental costs were rising in community buildings as well as council-run premises. She said, 'What we're finding is that where we do have agreements that have been longstanding, they are being reviewed. I would like to see Government funding to help smaller community groups.'

She said one pre-school in the area is moving from council premises to a tenants' association building to keep fees affordable.

The survey also found childminder fees in England have risen more steeply than nursery costs, with a place for a child under two up by 8 per cent.

Lorna Owen, an NCMA accredited childminder from Fleet in Hampshire, has had to put up her fees for under-fives for the first time in four years, to £40 a day.

'We've been a lot cheaper than nurseries for a long time,' she said. 'But because everyday costs have gone up, we've had to put up our rates.'

Ms Owen, who is working towards Early Years Professional Status, added, 'Childminders are on a par with nurseries now. We're professionals, we do the EYFS, we offer free nursery education places, and we do lots of training in our own time.'

Andrew Fletcher of the NCMA said, 'We know from evidence that many childminders find it challenging to sustain their business, with fees often including costs for outings, meals, nappies and so on. Our latest data shows that just over 50 per cent of childminding businesses turn over less than £7,000 per year and many don't even manage to break even.'

- See Analysis, p10