How expensive is childcare in your area?

Childcare costs in the East or South East of the UK could take up as much as 54% of a yearly salary, research from AJ Bell found.

The figures are based on the cost of childcare for one child for 50 hours per week.

In the South East of England full time childcare costs come to an average of £16,219 a year, which is over half of the average salary of £30,118.

In the east of England, AJ Bell found that parents earn an average of £28,382, but can face childcare costs of £15,204 a year.

In London those on an average wage of £37,705 will pay around £18,986, which is above half of their salary.

The West Midlands and South West also came in above 50%, while it will cost half the average wage in the North East to care for childcare.

This research comes as a separate report from the children’s charity Coram reveals that nursery costs have risen by 7% in a year. Coram also found that only 34% of English councils reported having enough childcare places, which is a drop of 14% from last year, while 35% reported having enough spaces for children under two.

Coram also found a drop in childcare places for children with disabilities, with only 6% of councils reporting sufficient spaces, down 12% from 2023.

Laura Suter, personal finance director at AJ Bell said: “These figures reveal the financial challenge faced by many working parents, illustrating the huge percentage of wages that can be swallowed up by childcare fees.

"When you factor in taxes, and the cost of getting to work on top of this, it's clear that for many people going back to work just isn't financially viable.”

How much does childcare cost in your area?

Region	Pay	Childcare	Childcare as % of wage
South East	£30,181	£16,219	54%
East	£28,382	£15,204	54%
West Midlands	£27,903	£14,832	53%
South West	£27,425	£14,003	51%
North East	£26,442	£13,144	50%
London	£37,705	£18,719	50%
Yorkshire and The Humber	£27,206	£13,311	49%
Wales	£27,082	£13,049	48%
North West	£27,960	£13,271	47%
East Midlands	£26,754	£12,626	47%

Help for childcare costs:

See if you’re entitled to government help with childcare costs.

From April this year, eligible working parents will now be entitled to 30 hours of free childcare for children aged 2.

It’ll be rolled out in stages.

What does the government mean by working parents?

The government states that working parents class as:

• Individually earn more than £8,670 but less than £100,000 a year.
• For couples, the rules apply to both parents, so both must earn at least £8,670 and neither can earn more than £100,000

Make sure you’re claiming child benefit if you’re eligible too. During the spring budget, the Chancellor raised the threshold at which working parents pay the high income child benefit charge  to £60,000, while the threshold at which it is withdrawn will increase to £80,000.