With almost 50% of parents being forced into debt or needing to dip into their savings, we explore the options available if you’re struggling to cope with the high cost of childcare

How expensive is childcare in the UK?

Childcare is one of parents’ biggest monthly expenditures. In fact, it’s so costly that many are starting to see parenthood as a luxury few can afford.

Half of all parents in England with a child under five spend more than 25% of their household income on childcare, a 16% increase year-on-year.

Data from the Department for Education puts the average cost of having a child under two attend nursery full-time (50 hours) at £269.85 a week. This works out to an annual cost of £14,030, which is equivalent to 40% of the average UK pre-tax salary of £34,900.

These costs can vary depending on where you’re based. Parents based in London will typically pay 50% more each week than those enrolling their children in childcare in Yorkshire and Humber.

And it’s not only parents of under-fives who face hefty bills. Those who need to make use of after-school clubs, for example, pay an average of £66.52 each week.

How many parents are facing debt due to childcare costs?

A recent survey by Women in Data and campaign group Pregnant Then Screwed found that 45.9% of parents have either been forced into debt or had to withdraw funds from their savings to keep up with their early education and childcare costs. That’s a 30% increase on last year.

1 in 5 parents of a child under five say they’ve had to take money out of their savings and pension to pay for their childcare, while 1 in 4 have had to rely on credit cards, take out a loan, or borrow money from friends or relatives to cover their bills.

The situation is even more difficult for single parents. 66.5% – that’s two-thirds – of single parents of children under five have accrued debt due to their childcare costs.

What can you do if you’re facing childcare debt?

While the high cost of childcare – and its disproportionate effect on single parents and women – will require institutional change to solve, there are steps you can take if you’re struggling to pay for your child’s early years care and at risk of going into debt:

Use your full free entitlement

In recognition of the lack of affordable childcare, the government funds free childcare hours for working parents.

In England, if your child is two, you’re entitled to 15 hours free childcare. This increases to 30 hours if your child is aged three or four. This entitlement is set to rise in September 2025 when working parents of children under five will be entitled to claim 30 free hours a week for 38 weeks a year.

In Scotland, you’re eligible for up to 1,140 funded hours (around 30 hours a week in term time) if your child is three or four years old.

In Wales, three- and four-year-olds are also eligible for up to 30 free childcare hours a week for 48 weeks of the year.

While these funded hours can be useful, staffing shortages have led to many nurseries closing or having extremely long waiting lists. A third of parents say that their local nursery has a waiting list longer than nine months. Childcare costs can also be expensive if you need to add more time outside of these funded hours.

Investigate benefit options

If you’re a parent who is struggling with childcare costs, double-check that you’re claiming all the benefits that you’re entitled to have. Every little helps, after all.

• Child benefits

You can claim child benefit if you’re responsible for a child under 16. While only one person can claim this benefit, there’s no limit on the number of children you can claim for.

This allowance will usually be paid every four weeks and you’ll receive £24 a week for your eldest or only child and £15.90 for each additional child.

If you and your partner earn over £60,000 you may have to pay a High-Income Child Benefit Charge, but you can opt out of payments instead if you wish.

There is also help available for parents who are pursuing education:

• The Care to Learn scheme can support you with childcare costs (up to £180 per week if you live outside London, £195 in London) if you’re aged under 20 and studying a publicly funded course at school or college.
• Childcare grants can also be offered to parents who are full-time students in higher education and have children aged under 15

Explore new income streams

Parents of young children can find it very difficult to juggle full-time work and childcare. The high cost and lack of availability of early years care has led to 34% of mothers and 12% of fathers being unable to work full-time.

If this reflects your situation, you may be able to find new income streams that can help offset some of the costs of your childcare.

While it’s important to be wary of potential scams and home working opportunities that sound too good to be true, there are ways that you could boost your income that fit around your parenting responsibilities.

Consider using your admin skills as a freelance virtual assistance, offer online tutoring, start your own small business selling handmade items, or sell items like used clothing and toys online.

Seek debt advice

Whether you’re already in debt due to your childcare costs or concerned that making your existing debt repayments will be a struggle due to the nursery fees you have to pay, don’t be afraid to seek debt advice.

A friendly expert debt adviser can take the time to understand your situation, explain the different options available, and help you find the right debt management solution for you.

Has navigating childcare debt resulted in Bailiff action? Our team is here to help. Give us a call on 0161 660 7255 or send a message here