Childcare costs going up much faster than inflation

A new report published by the Daycare Trust found that nursery placement costs for children that are over the age of two have increased by double the rate of inflation over the course of 2009, and that on average childcare costs half the gross earnings of most parents who work full time in England.

The findings of the national childcare charity also show that even though the recession has decreased the earning power of many people, nursery fees have increased by about five percent with most parents spending around £4,500 every year for childcare.  The situation is even worse in London where parents on average spend about £11,000 per year or about £212 per week for 25 hours of nursery use.

Other areas in England also saw large increases in the cost of childcare with Yorkshire and the East Midlands reporting an increase of about 24% and Humber showing an increase of about 13%.

According to the charity, the results show how parents are struggling as they face pay cuts, retention, and hour reduction at the same time they face rising childcare costs.

Chief executive of the Daycare Trust, Alison Garnham, stated that the figures are shocking to see and that the government should extend the promise of free nursery care to all children in the country that are over the age of two.

Currently, only children over three qualify for government funded childcare for 12.5 hours although in the future this will be increased to 15 hours per week.

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