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Parents paying 65 per cent of wages for under-twos nursery place in England

Childcare costs for a child under two are now more than two-thirds of one parent’s take-home pay in some parts of England, according to new analysis.
Parents are facing crippling childcare costs across the country, the analysis shows PHOTO Adobe Stock
Parents are facing crippling childcare costs across the country, the analysis shows PHOTO Adobe Stock

In Scotland one person would pay just over half of their weekly earnings (51 per cent), while in Wales the figure is similar to England, 63 per cent and 65 per cent respectively.

The findings come from analysis by Business in the Community (BITC), The Prince’s Responsible Business Network, of figures from Coram Family and Childcare survey results alongside ONS income data.

According to the analysis parents in London and the east of England are paying the most – 71 per cent of their weekly salary.

And in Norwich, costs are almost three-quarters of the median weekly take-home pay of £408, with full-time nursery costing £304 a week or 74 per cent of one parent’s weekly take-home pay.

But the analysis reveals that costs are high in towns and cities across England.

In Coventry, median weekly take-home pay is £412, with full-time nursery costing £267 a week or 65 per cent of one parent’s take-home pay.

In Blackpool, the median weekly take-home pay is £344, with full-time nursery costing £238 a week or 69 per cent of one parent’s weekly take-home pay, while in  Newport, the median weekly take-home pay is £396, with full-time nursery costing £247 a week or 62 per cent of one parent’s weekly take-home pay.

Figures from the ONS show that the number of women not working to look after family has risen by 5 per cent in the past year.

Katy Neep, gender director at Business in the Community, said it was a ‘crisis of access and affordability’.

She said, ‘The percentage of take-home pay spent on childcare should be a wake-up call. While most families do receive some financial support from government, everyone’s situation is different, and some parents may have to fork out half their weekly pay just so that they can go to work.

'Childcare costs on top of rising household bills are putting working parents, particularly women in a very difficult position. Many working women are having to decide whether working is even worth it when they look at what’s left in their bank accounts after paying for childcare.’