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Greater subsidy demanded as nursery costs rise 5 per cent

The cost of placing a child under two in a day nursery in England has risen by almost 5 per cent in the past 12 months, according to research by the Daycare Trust. The Trust's 2004 survey of childcare costs, published earlier this week, found that average day nursery fees have risen by more than inflation for the third year running, from 128 a week in 2003 to 134 a week now - almost 7,000 a year. In London and the south-east, a nursery place costs around 168 a week.
The cost of placing a child under two in a day nursery in England has risen by almost 5 per cent in the past 12 months, according to research by the Daycare Trust.

The Trust's 2004 survey of childcare costs, published earlier this week, found that average day nursery fees have risen by more than inflation for the third year running, from 128 a week in 2003 to 134 a week now - almost 7,000 a year. In London and the south-east, a nursery place costs around 168 a week.

The survey also found that the typical rate for a full-time place for an under-two with a childminder is 120 a week, while 15 hours a week at an after-school club costs in the region of 35.

The Trust called for the Government to increase help for parents by acknowledging that those with two or more children face double or more childcare costs, and increasing the percentage of costs subsidised by childcare tax credits.

The survey was published to coincide with a conference, called 'Women, child poverty and childcare - Making the links', held jointly by the Daycare Trust and the TUC. But comments made by TUC general secretary Brendan Barber that 'more widespread, better, cheaper childcare would be a winner for parents everywhere' were confusing the issue, said National Day Nurseries Association chief executive Rosemary Murphy.

She said that rather than demanding cheaper childcare, 'we should all be calling for more effective subsidy so that the burden of cost is not placed on parents or childcare workers. Fees are only at the current level because childcare workers effectively provide a subsidy from their own pockets by accepting a low wage.'

Mrs Murphy said that the Daycare Trust survey failed to highlight the true costs of childcare, because '70 per cent of childcare fees go directly on childcare workers' salaries, which everyone agrees are too low'.

She added, 'A massive increase in childcare tax credit is essential if childcare workers are to be paid a fair wage.'