One in four parents rely on credit to meet childcare costs

One in four parents rely on credit to meet childcare costs

Published at 9:32am 7th March 2019. (Updated at 10:11am 7th March 2019)

3 minute read

A report has found parents are struggling to cope with rising childcare costs.

The average monthly cost of childcare is said to be more than a £1000 per child. 

Childcare costs are putting a strain on some families disposable income.

According to credit report provide Noddle almost quarter of parents have to rely on credit to pay nursery or childminding bills.

Families tapping into credit whilst their children are in nursery or with a childminder accrue on average £9,220 of debt before their children reach primary school age.

The average amount of time taken to pay the loan back at 16 months

Managing Director Jacqueline Dewey says 

“A lot of parents are saying their unprepared for these costs and that these years before their children go to school are the most financially challenging of their lives."

Children (pixabay)
One in four parents are said to be relying on credit to meet rising childcare costs.

These higher costs are coming as a surprise to many parents.

Mum-of-two Jane Blackwood was at one point spending more on childcare than the mortgage.

"When we had children, we said we'd be sensible from the start - and put money aside for university. But we've basically had a complete cut on saving anything for the years while the children are pre-school age. Rising childcare costs have had a huge impact on us as family."

Jane added:

"One thing we have done and been forced to do is get a credit card. For Christmas last year, for example, we used all savings we had which were put aside in anticipation to supplement the childcare costs. That has gone - we had to get the credit card to pay for every day, 'normal' stuff."

cash
Parents are struggling with rising childcare costs.

INCREASE IN CHILDCARE COSTS:

The majority (70%) of parents say their childcare provider has increased rates in the last year

Parents say the increases are being justified by providers as a response to inflation, wage growth, or Brexit uncertainty.

Some parents have also found going out to work didn't make financial sense with more than half saying they or their partner had to reduce their working hours to provide childcare.

 

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