Childcare challenges

For many parents, their childcare bill is likely to be one of the biggest monthly outgoings – often more than the mortgage or rent. Children’s charity Coram’s recent survey shows that a part-time place at nursery (25 hours a week) for a child under two now costs an average of £148.63 a week. According to research by Working Families, around 65% of parents of under-fives said the cost of childcare is a financial strain on their family and that four in 10 have got into debt to pay for it.

‘The Government offers a patchwork of support for parents looking for help with childcare costs,’ says

Laura Suter, director of personal finance at AJ Bell. This includes child benefit, tax-free childcare, free childcare hours and subsidised childcare for those on certain benefits. ‘Many of these schemes are under-claimed by parents who aren’t aware they exist, don’t know how they work or assume they aren’t eligible for them. Whether it’s care for pre-schoolers or wrap-around and holiday care for school-age children, grandparents are increasingly picking up the slack,’ she says.

Legal & General research shows that family members providing childcare equals £38bn a year. Almost half (42%) of parents and grandparents aged 55 and over have assisted their younger family members by providing unpaid childcare in the past year, according to the ONS. ‘On average, they spend almost nine hours a week caring for children and grandchildren, which would otherwise cost around £5,400 in childcare fees annually,’ says Paula Llewellyn, chief marketing officer and direct MD at Legal & General Retail. While this childcare is a lifeline for many parents, it’s important that it works for all involved.

‘If you’re helping with childcare, be honest about the time you can give and the expenses you’re willing to meet,’ says Jackie.

Family members providing childcare equals £38bn a year