Parents forced to use savings or get into debt to pay for childcare

PARENTS are being forced to use their savings or take on debt to pay for childcare, a survey shows.

More than four in 10 parents of under-fives in England reported taking on debt or withdrawing savings to pay for childcare, according to research from campaign group Pregnant Then Screwed.

While last year’s research found 35 per cent of parents relying on debt or savings for childcare costs, this year it was about 46 per cent, the charity said.

Some 37 per cent reported having to use credit cards, take out a loan or borrow money from family or friends, while 22 per cent said they had to withdraw money from savings or pensions.

A fifth of mothers felt unable to take up a more senior role because of childcare costs and availability, compared with about 9 per cent of fathers, according to the survey. Joeli Brearley, founder of Pregnant Then Screwed, said: “We’ve not only got a cost of living crisis, we’ve got a cost-of-working crisis that disproportionately impacts mothers.”

Jeremy Hunt, the Chancellor, announced in March 2023 that some families of children as young as nine months will be able to claim 30 hours of free childcare a week.

However, there have been warnings of “practical issues” affecting some families seeking to ensure their access to the scheme and some nurseries said they had not yet been given the funding rates they will be paid by their local authority.

A Department for Education spokesman said: “We are rolling out the largest ever expansion in childcare support in England’s history, saving families using the full 30 funded hours up to £6,500 per year.”