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Nursery costs soaring for under-twos

The cost of a nursery place for a child under two has risen by 4.8 per cent in the past year - more than double the average rise in wages - according to the annual survey by the Daycare Trust.

The most expensive nursery was in the West Midlands and charged parents11 an hour. This means that parents could pay 28,600 ayear for 50 hours a week.

London and the south-east of England are still the most expensive areasof Britain for childcare.

The average cost for a child under two in London for 25 hours a week is118.54 a week or 6,164 a year.

Childcare is cheapest in the north-west, where the same number of hoursis 82.70 a week, the equivalent of 4,300 a year.

The average cost of a nursery place in Scotland is higher than elsewherein the UK.

The research, now in its tenth year, is compiled from figures providedby Family Information Services.

It also highlights a shortage of childcare places, with 60 per cent ofFIS reporting a lack of available childcare in their area and only 11per cent of local authorities providing enough childcare for disabledchildren.

The Daycare Trust is calling on local authorities to prioritise earlyyears and childcare services when finalising their budgets in the nextfew weeks and ensure the entire Sure Start budget is spent asintended.

Anand Shukla, acting chief executive of the Daycare Trust, said, 'Whenparents see childcare costs increasing far faster than their wages, itis no wonder they may think twice about the economic sense of staying inwork.'

He said he was also concerned about how the reduction in the childcareelement of the Working Tax Credit would affect families.

'Once this change comes into place, some families will effectively havean extra 546 a year added to their childcare bill.'

CHILDCARE COSTS IN BRITAIN 2011 FOR 25 HOURS A WEEK
Nursery Nursery Childminder Childminder
Region (under 2) (2 and over) (under 2) (2 and over)
England average 97 94 90 88
Scotland average 100 98 90 88
Wales average 91 89 90 90
Source: Daycare Trust.