The cost of childcare could be pushing more parents into debt as new research has revealed that families in the UK are scrabbling to find an additiona…
The cost of childcare could be pushing more parents into debt as new research has revealed that families in the UK are scrabbling to find an additional £276 million in 2011 in order to meet such rising expenses compared to last year.
According to Family Investments, mothers are paying an average £15.33 more every month than in 2010, with 1.5 million mums trying to pay for childcare, nursery school and minders for their under-18s.
Middle-earners have been the hardest hit, with households with an income between £28,000 and £41,000 seeing their dependant-related expenditure rise by around £42.26 a month.
In addition, mothers of under-fives account for 45 per cent of those who pay for childcare and so have been the most affected. In 2010 the average cost of 25 hours of care a week was around £60 a month and this has now risen by £15.33.
Head of savings and investments at Family Investments Kate Moore said: “Some families on relatively modest incomes have already lost some or all of their Child Tax Credits and those households with a higher rate taxpayer are also facing the prospect of losing child benefit payments next year.”
And it seems mums in London are at most risk of debt problems due to childcare with their average monthly spend creeping up by £40.47, while parents in the north have had to endure a £21.71 rise.
This follows research from the Office for National Statistics, which revealed those who have been out of work for the longest could be in a difficult debt situation – which could be even more difficult if unemployed parents are struggling to afford childcare.
By James Francis