Labour has said the Government is 'failing families', as the cost of childcare has risen a third faster than inflation, and nurseries are warning that inflation and other rising costs will lead them to have no choice but to increase fees for parents.
At the same time, workers have seen their pay fall, with wages £12 per week lower in real terms than in 2008, it said.
Labour's analysis uses figures from the Coram 2023 Childcare Survey for average childcare costs and tracks them against the Consumer Price Index (CPI) ONS - Inflation and Price Indices (Time Series).
The figures show that in 2010, the average cost of a part-time nursery place was £82. Since then, the average cost has risen by 80 per cent to around £146 a week. That means the average family is paying more than £5,500 a year for part-time childcare during term-time, an increase of £2,400 compared to 2010. Since 2017 alone, the average annual cost has increased by around £1,200.
Labour also said that the average cost of a full-time place has increased by more than £70 per week since 2017, and is now £283.95.
The party claims that for a couple earning the average wage, the UK is the third-most expensive country for childcare in the world.
Labour's research follows research this week that found that nearly half of parents have been plunged into debt or withdrawn their savings to pay for childcare.
Labour has commissioned an expert Early Years Review. chaired by the former chief inspector of Ofsted Sir David Bell to set out ways to improve childcare provision and ensure early education is available in every corner of the country.
Commenting on the figures, Bridget Phillipson MP, Labour's shadow education secretary, said, ‘Families are forking out thousands of pounds for childcare, all the while being sold a shoddy plan by a Conservative Government that hasn't the first clue of how to deliver it.
‘Families deserve so much better, which is why Labour has commissioned a full, expert-led early years review to examine how we expand access to the flexible childcare that meets families' needs without breaking their finances.
‘The choice couldn't be starker. A clapped out Tory Government that has failed families for 14 years, or a Labour Party that is ready to reform childcare so it’s accessible for families right across the country.’
Meghan Meek O'Connor, senior policy adviser at Save the Children UK, said, ‘Childcare prices have spiralled with fees the same as housing costs in some parts of the UK. This is leading to debt and career sacrifices for parents and a lack of access to early education for children. The system must change.
‘First, the UK Government's ambitious free hours expansion needs to be funded properly - we estimate there is currently a shortfall of £5 billion. Ministers must also work out how to create the right hiring conditions to recruit the 40,000 staff needed to hit demand.
‘And crucially, the system must also work for parents studying or in training, who are currently completely excluded from accessing free hours.’
Commenting, Neil Leitch, CEO of the Early Years Alliance, said, 'It comes as absolutely no surprise that that the cost of early education and childcare has risen a third faster than inflation over the last 14 years.
'We know that nurseries, pre-schools and childminders have been doing their best to deliver early years care and education that is both high quality and affordable, but years of severe underfunding has meant that many have had no choice but to increase costs just to keep their doors open.'
