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Childcare costs more than the average mortgage


According to The Family and Childcare Trust’s annual report, many parents are now paying more for childcare annually, than for the average mortgage bill.

The report claims that childcare in England, Scotland and Wales is becoming increasingly unaffordable, as the combined average fee for one child in an after-school club, and another in part-time nursery care now stands at £7,549 per year, in comparison to the average annual mortgage repayment which is currently estimated at £7,207.

Additionally, the average mortgage cost is now much less than the average cost of childcare for a family with two young children. The report claimed that the combined cost for a two-year old in full-time care and a five-year old in before and after-school clubs now stands at around £11,700 per year.

Not Working for Anybody

The report made the claim that the current system is not working for anybody, despite successive governments spending £6bn on supporting childcare every year.

The report stated that: "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."

Liz Bayram, chief executive of the Professional Association for Child Care and Early years suggested that the government need to recognise the economic benefit of investing in affordable child care, as it would help families to balance work and caring responsibilities.

Help for lower income families

The Chief Executive of the Family and Childcare Trust, Anand Shukla criticised the government for funding childcare for families earning up to £300,000, stating that "We would weight it differently to get some funding to lower income families.”

However, Stephen Davies, of the Institute for Economic Affairs opposed this by suggesting that having a child is a “voluntary decision” and continued to ask the question: “Why should you then expect other people, in the shape of the taxpayer, to help pick up some of the costs of that decision?"

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