High childcare costs force parents to reduce work hours | Personal Finance | Finance
A study of 2,000 parents with children aged five and under has shown that 71% have had their childcare arrangements disrupted by the cost of living.
The high cost of childcare has forced four in ten parents to reduce their work hours, a figure that rises to 45% among mothers who find it more economical to cut back on their working hours and stay at home with their children.
The research was commissioned by Your Co-op Little Pioneers, which is offering the option to spread the cost of childcare and lower monthly bills, in an effort to help children access early years education.
A solid 88% highlighted the importance of returning to work due to its financial impact (43%), a desire to interact with adults more frequently (32%) and not wanting to let the career they’ve worked so hard for fall by the wayside (30%).
However, parents also view nursery as an opportunity for their children to gain valuable skills at an early age. When at nursery, their children develop social skills (69%), make friends (67%) and build confidence (63%).
Sara Dunham, chief officer for the early years provider, said: “By the time a child reaches five, they have already developed 90% of their brain, so these early years and experiences lay the foundations for learning, socialising and overall confidence.”
“But this research shows how childcare costs are impacting families, and some to the point they are having to care for their children themselves over returning to work.”
Labour has pledged to roll out additional government-funded childcare from September 2024 and September 2025, leading to 39% of eligible parents stating they are more likely to return to work due to increased ability to cover childcare costs.
However, OnePoll data reveals that a fifth don’t believe the 3,000 new nursery classes outlined in Labour’s election manifesto will meet existing demand.
Despite 77% of users finding government-funded childcare support financially beneficial, 14% of eligible families have not taken advantage of it. Currently, 83% of working parents rely on family and friends for childcare assistance, averaging two days a week.
The study found that over half (52%) of parents would benefit from spreading the cost of nursery fees, either through smaller, regular payments or smaller monthly sums over an extended period.
Sara Dunham, from Your Co-op Little Pioneers, which introduced a ‘Play Now, Pay Later’ scheme for parental flexibility, said: “We believe all children should have access to quality early years education.”
She added: “We know how important this is in helping the next generation achieve their true potential, including developing social skills, building confidence and language development.”
“But the reality is that many parents are having to cut the amount of time their child spends in nursery and limit their own career due to the pressure the ongoing cost-of-living crisis is putting on families.”
