According to Coram Family and Childcare’s 21st annual Childcare Survey, published today (Tuesday), for a part-time nursery place (25 hours) parents are paying 2.5 per cent more for childcare for under-twos, 2 per cent more for two-year-olds, and 3.5 per cent for three and four-year-olds compared to last year.
The cost of childcare for children under the age of two is greatest in inner London where parents pay an average of £183.56 per week for 25 hours, while those in Yorkshire and Humberside pay around £122.17.
The survey finds that for parents eligible for the 30 hours of funded childcare and wanting a full-time place (50 hours a week), they are having to pay, an average of £105.76 a week for the additional 20 hours in England and £98.58 in Wales.
In Scotland, where all three and four-year-olds are able to access 1,140 hours of funded childcare per year, the cost of a full-time nursery place is, on average, £85.03 per week. This is down from £145.70 a week in 2020 – before the funded hours was rolled out across the country.
The survey, which is based upon data from local authorities in England, Scotland and Wales returned to Coram between November 2021 and February 2022, also shows that families are now paying a weekly average of £66.52 per week for out-of-school care. This compares to £62.12 in 2021.
Availability
Coram’s research also reveals that availability of childcare has ‘fallen sharply’, with 57 per cent of local authorities now reporting that they have enough places available for children under the age of two, down from 72 per cent in 2021. Only 59 per cent of local authorities said they have enough childcare available for parents working full-time, down from 68 per cent in 2021, which Coram warns ‘limits many parents’ ability to work’.
The survey shows that availability of places varies regionally. Local authorities in the East of England were less likely to report not having enough places for children under two and councils in the North-East more likely to - with 100 per cent stating they don’t have sufficiency of childcare for this age.
The data also shows increasing gaps in childcare for children with special educational needs and disabilities (SEND), with just 21 per cent of local authorities having enough childcare available. This compares to 25 per cent last year.
Similarly, availability of two-year-old places and universal funded places for three and four-year-olds, has dropped by 9 per cent and 3 per cent respectively, impacting the most disadvantaged children and families, says Coram.
Free entitlements
The Childcare Survey also reveals the number of children accessing early years entitlements has ‘plummeted’. Around 38 per cent of local authorities reported seeing a drop in the number of two-year-olds taking up their place.
Two-fifths (40 per cent) of local authorities have seen a decrease in the uptake of universal three and four-year-old places.
Impact of Covid-19
The survey also reveals the ongoing impact of the pandemic on childcare providers.
A total of 14 per cent of local authorities reported that at least a quarter of their group-based providers are facing ‘severe’ financial difficulties, while 17 per cent are seeing at least a quarter of their childminders in the same position.
Nearly two-thirds (57 per cent) of local authorities have seen providers raise their prices and 30 per cent say providers have increased the number of children looked after by each staff member.
One in three (30 per cent) local authorities thought that quality of childcare had reduced since the pandemic.
The survey also confirms the sector is continuing to face a recruitment crisis with 94 per cent of respondents saying they are struggling to find staff with the required qualifications and experience, with most saying it is ‘very difficult’.
A third of local authorities reported seeing an increase in permanent closures of childcare settings compared to 2021.
Coram says that an ‘ambitious strategy and radical reform’ which will take time and ‘political will is needed. In the short term, it urges governments, at all levels, to take ‘immediate action’ to fix ‘urgent problems’, including:
- Extending eligibility of the 30 hours locally – at a minimum to parents in training, education, to single parents and families with no recourse to public funds.
- Reform universal credit so it does not lock parents out of work – by increasing the maximum amount of costs paid under the benefit and guaranteeing support for upfront childcare costs.
- Reallocating the underspend from Tax-Free Childcare to other parts of the childcare system – realigning Government funding towards low-income families.
- Westminster Government following Scotland’s lead by making 30 hours open to all three and four-year-olds.
- Doubling the Early Years Pupil Premium to boost the outcomes of the most disadvantaged.
'We are disappointed the Government has refused to review childcare funding and availability.'
Ellen Broomé, managing director of Coram Family and Childcare, said, ‘We are disappointed that amid an ongoing cost of living crisis, and off the back of a pandemic which has severely impacted children’s life chances, the Government has again refused to review childcare funding and availability. Many parents, up and down the country, will be locked out of work or struggle to make ends meet as childcare prices continue to go up and the availability of places goes down. The most vulnerable children will miss out the most on this boost to their development and outcomes.
‘With the Chancellor delivering his Budget tomorrow (Wednesday), we urge him to make sure that childcare and children’s life chances are at the very heart of his announcements.’
The National Day Nurseries Association (NDNA) said it was ‘very concerned’ about the reduction in childcare capacity, and warned without extra investment, more nurseries will reduce their funded two-year-old places.
Chief executive Purnima Tanuku explained, ‘We are very concerned about the reduction in capacity generally, but this most serious in deprived areas and for children with special educational needs and disabilities. These children have the most to gain from high-quality early education and care but are the most likely to be unable to access it due to a lack of places or affordability. Without additional investment, more nurseries will be reducing their funded places for two-year-olds.
‘It’s important to note that Coram’s survey is showing childcare fees rising at a lower rate than current inflation. We know nurseries are working really hard to try to keep costs down for families at this challenging time.
‘We have been calling loudly for the whole funding system to be reviewed, it has to work for parents and providers. And giving business rates relief to childcare businesses from April is more critical than ever.’
A Government spokesperson said, 'The early years of a child’s life are the most crucial, which is why we have invested more than £3.5 billion in each of the last three years to deliver the free childcare offers, including the 30 hours per week for working parents. We are also investing millions in Family Hubs - where families can access important support services.
'To support working families more widely, we also recently announced the biggest ever increase in the National Living Wage since its introduction from April 2022 - and thanks to our action, unemployment continues to fall.'
Separately, the Department for Education said that the 'number of childcare places remains stable and it has not seen any significant number of parents unable to secure a place.
