Summer holiday childcare costs forcing parents to take unpaid leave

The findings are taken from a survey of 27,000 parents by Pregnant Than Screwed and the latest Coram Family and Childcare’s annual Holiday Childcare Survey on the cost and availability of childcare over the summer holidays – launched at the same time.

The data from campaigner Pregnant Then Screwed, reveals one in eight parents using formal childcare over the summer expect to spend more than £2,000 over the period.

According to Coram Family and Childcare, the average cost of a holiday club place is now £148 a week – more than double what parents pay for an after-school club during term-time. It finds that families will be almost £900 out of pocket for six weeks of holiday childcare for each school age child, nearly £500 more than what they would pay for six weeks childcare before and after school.

The average weekly price of holiday childcare, by nation and region, weighted -Coram Family and Childcare.

It also finds that only 27 per cent of English local authorities have enough holiday childcare available for parents who work full-time in their area, down 6 per cent on last year. Parents of disabled children face the most acute challenge, with just 7 per cent of local authorities having sufficiency, a big drop from 16 per cent in 2021. There is also a lack of holiday childcare for parents who work atypical hours and that live in rural areas.

More than three-quarters of parents in the Pregnant Then Screwed survey say that they need formal childcare over the holidays in order to work, but due to a lack of availability and soaring costs, four in 10 parents will need to take unpaid leave to manage childcare.

Parents were also asked if they would be using the Tax-Free Childcare scheme to pay towards summer holiday - more than 41 per cent said they would be. Of those not using Tax-Free Childcare, over 44 per cent did not believe they are eligible, 15 per cent said the system is too complicated and a further 15 per cent did not know about it. This is despite the scheme being in place for more than five years and several Government campaigns to promote it.

Other key findings from the survey of parents include:

• Those who have been unable to get summer childcare over the holidays to meet their needs are concerned this will limit their career prospects.
• More than a third of parents (35 per cent) say they will have to reduce spending on essentials like food, heat, fuel and clothing due to the cost of summer childcare, and almost one in five (18 per cent) will get themselves into debt.
• Of those parents who are Black African Caribbean and Black British, 10 per cent say they will have to skip meals to pay for summer childcare, compared to a net total of 3.6 per cent.

'This needs decisive Government action and a clear strategy to ensure childcare for all.'

Joeli Brearley, founder of Pregnant Then Screwed, said, ‘We don’t just have a cost-of-living crisis, we have a cost of working crisis, with almost half of parents being forced to take unpaid leave as they cannot afford formal childcare over the summer holidays. This comes at a time when families are struggling to make ends meet. The Government’s response will be that they are promoting the Tax-Free childcare scheme, but our research found that only 16 per cent of respondents were unaware of the scheme. Promoting the scheme is not the solution to this problem. This needs decisive Government action and a clear strategy to ensure childcare for children of all ages is both accessible and affordable before we push more families into poverty.’

Coram Family and Childcare is now calling on the UK, Scottish and Welsh Government to:

• Reform universal credit so it does not lock parents out of work by increasing the maximum amount of childcare fees paid under the benefit and guaranteeing support for upfront costs.
• Give increased support to Family Information Services to provide holiday childcare information and broker access to local provision that meets demand.
• Ensure local authorities have a ‘comprehensive’ overview of the cost and availability of holiday childcare in their area to identify and plug gaps in provision.

'This steep rise in holiday childcare will push many families further into financial distress.'

Ellen Broomé, managing director of Coram Family and Childcare, commented, ‘Families across Britain are reeling from record inflation and this steep rise in holiday childcare will push many further into financial distress. Many parents, particularly mothers, will have no choice but be locked out of work altogether or struggle to pay for basic necessities such as food or rent. 

‘Holiday childcare is key economic infrastructure. The lack of childcare places for working parents is a serious problem – not just for families but for the country’s economic output. Children have experienced such disruption throughout the pandemic, and holiday childcare offers them a safe and fun space to stay active and connect with their friends while also helping to tackle the summer learning loss.’

The TUC's general secretary Frances O'Grady said that wages need to 'urgently' rise to stop households 'drowning in bills' as 'Holiday childcare shouldn't be pushing families to the edge.' 

Purnima Tanuku, chief executive of National Day Nurseries Association (NDNA), commented, ‘We have seen inflation rising to over 9 per cent this year and costs for nurseries and childcare settings are drastically increasing. The fact that parents are reporting increases of 5 per cent shows just how hard providers are working to keep costs down and supporting families.

‘For years now the sector has been experiencing a debilitating staffing crisis which we are seeing limit capacity for places and even forcing settings to close.

‘Governments across the UK need to support efforts to bring more people into the sector and show how rewarding working in childcare can be.’

Responding to both pieces of research, Labour’s shadow minister for children and early years Helen Hayes, said, ‘After 12 years of failing to get a grip on spiralling childcare costs, the Conservatives are now too busy warring amongst themselves to prioritise parents’ concerns.'

• Following on from the research, Pregnant Then Screwed is inviting parents to attend a national March of the Mummies protest on 29 October to demand that the Government invests in good quality, affordable childcare for all, as well as commit to other family friendly policies. Find out more here