Childcare costs adding to debt misery?

The care costs incurred by average two-child families could result in more people requiring debt help, new figures have suggested.

A new report carried out by Aviva – the Cost of the Sibling study – found millions of parents in the UK are being forced to slash their working hours as they find it increasingly difficult to afford childcare fees.

As part of the survey, the organisation interviewed 1,000 individuals who had two or more youngsters.

It discovered four-in-ten households believe it is not worth both parents working full-time following the birth of their second child.

The body noted two kids is the current norm for family size in Britain, but found such costs for both of their offspring could mount up to as much as £17,000 a year.

Many of these households admitted a significant chunk of their earnings go towards child-minder payments, resulting in numerous couples deciding at least one of them should give up employment or cut their working hours.

According to Aviva’s findings, 57 per cent of respondents who slashed the amount of time they spend in the workplace after having a first child, did so in an attempt to see their baby more often.

However, financial factors became the biggest influence – accounting for 39 per cent – for those who altered their working practices after the birth of their second child.

Louise Colley, head of protection marketing at the company, observed: “As any parent will know, children have a huge financial impact on a family.”

Recent research carried out by Santander Cards suggested taking youngsters away on a vacation during the summer holidays could hit parents hard in the pocket, as getaway prices soar by an average of 38 per cent during this period.

By Joe Shervin