Parents of young children are spending more than £10,000 a year on childcare, according to a new report which highlights the "significant pressure" families are under to meet the cost of childminders or nursery places. The Institute of Fiscal Studies (IFS) said some are spending "very high amounts," adding to the strain caused by the cost of living crisis.
Fifteen per cent of families with a one-year-old in formal care are handing over more than £200 a week, equal to more than £10,000 per year, The Times reports. Meanwhile half with a one or two-year-old in full-time formal care of 40 hours per week or more have been spending more than £240 a week, which equates to more than £12,000.
"The cost of childcare in England is high compared with other countries, and has risen quickly over time," says the IFS. "According to data from one survey, the cost of a part-time nursery place for a child under two grew by 60% in cash terms between 2010 and 2021 – twice as fast as average earnings, and much higher than the 24% growth in overall prices in the same period."
