Both the National Day Nurseries Association (NDNA) and the National Childminding Association (NCMA) have called for the Government to subsidise childcare directly. They made their comments after the publication of a survey by the Daycare Trust that found the typical day nursery cost for a child under the age of two in England has risen by more than twice the rate of inflation over the past 12 months.
According to the survey of 111 of the 150 Children's Information Services in England, a place in a day nursery now costs 128 a week - more than Pounds 6,650 a year. This is up 6.7 per cent on last year, when the typical cost of a nursery place was 120 a week or 6,200 a year. In London and the south-east the cost of a place is much higher, at around 168 a week -more than 8,730 a year in inner London.
The survey found the highest nursery cost was 300 a week, while a full-time place with a childminder for a child under two was 118 a week.
However, Rosemary Murphy, NDNA chief executive, argued that either fees to parents would have to rise or the Government would have to directly subsidise care providers if childcarers are to earn decent salaries . She said, 'Some nursery staff are on salaries as low as 7,000 a year.
Staff salaries relate directly to the cost of delivery of service. If parents can only afford to spend 100 a week on childcare, this ceiling affects salaries as well.'
Mrs Murphy said that recruitment was becoming increasingly difficult because so many childcare staff were poorly paid. She pointed out that providers spent 70 per cent of their fees directly on salaries and pension benefits, and the remainder went on equipment, food, heating, buildings and overheads, which included VAT and business rates.
Gill Haynes, NCMA chief executive, said, 'There need to be more direct subsidies to childcarers from the Government and employers. There needs to be investment in people so that quality of provision is maintained and improved.'
She pointed out that although the cost of a childminder in London ranged from 3 to 5 an hour, the average childminder's earnings were 'still less than 2.50 per hour'.
But the Daycare Trust said parents should receive more financial help for childcare from the Government and employers. It called on the Government to raise the 70 per cent maximum of childcare costs covered by the childcare tax credit, increase the income levels under which families are eligible for the tax credit and encourage employers to provide more help by providing tax incentives for financial contributions towards childcare costs.
Daycare Trust director Stephen Burke said, 'Affordable childcare for all is crucial to achieving many of the Government's policies, from ending child poverty to raising educational attainment. Parents are paying too high a price for childcare services.'
The survey is on the website at www.daycaretrust.org.uk.
