Childcare costs in the UK: a challenge for families

Childcare costs in the UK are a big issue for many families, especially those with lower incomes.

Even with government schemes offering free childcare hours, many still find it hard to afford care for their children.

A recent study from the Institute for Policy Research (IPR) has looked into this problem and offers some important insights.

The reality of childcare costs

Many families struggle with childcare expenses, despite some support from the government.

The IPR study, which spoke to low-income parents on universal credit (UC), revealed a few key issues:

• The free hours provided are often not enough, leading parents to pay extra for meals and other services.
• Parents must pay for childcare upfront, then wait a long time for refunds, which can be frustrating.
• Families can lose access to free hours if they earn just a little more, making their situation worse.
• After-school and holiday clubs are often limited or unsuitable for all children, especially those with special needs.

The need for change

The researchers suggest several changes to improve access to affordable childcare:

• Parents on UC should be able to reclaim all their childcare costs, not just a portion.
• Provide free childcare to working parents on UC for under-fives.
• Reform and ring-fence the childcare element of UC.
• Free childcare should include more flexible options, such as sports or drama clubs.
• Programmes like Sure Start should be revived to help disadvantaged families balance work and childcare.
• The government should pay childcare providers directly to ease the burden on parents.
• Remove the earnings threshold so all families with two-year-olds get 15 hours of free childcare.
• Focus on improving the quality of early years education so every child gets high-quality care.

Why changes matter

Dr Marsha Wood from the IPR says struggling families are already juggling work and childcare.

“Childcare should ease their burden, not add to it. These changes could transform life for parents while giving children a better start,” she explained.

Do you need help?

If you're struggling with childcare costs, why not give us a call to see how we can help?

Call us on 0161 518 8285. We’re here 8am-8pm during the week and from 10am-4pm over the weekend.