Parents Pay More For Childcare Than Mortgage—Report

preschool

Image courtesy of Franklin Park Library

A new report suggests that many parents in Britain are paying more for childcare yearly than the average mortgage payments. The report, released by the The Family and Childcare Trust, says average fees for one child in part-time nursery, playgroup or after-school club totals to £7,549 per year, while full-time childcare costs are estimated at £11,700 a year. The average annual UK mortgage payment is estimated at £7,207 in 2012.

Unaffordable

According to reports, childcare in England, Wales, and Scotland is becoming increasingly unaffordable, but wages have remained static. The cost of childcare increased by 27 percent since 2009. This is despite the £6B support the government spends on childcare every year. The trust says the government will have to spend an additional £1bn into supporting childcare.

Not Working

The report says that the current system wasn’t working for anyone anymore.

“Children are losing out on vital early education and families remain trapped in poverty because they cannot make work pay. Childcare providers struggle with debts. Women fail to return to the labour market after they have children and the economy loses their skills and their taxes,” it adds.