Almost a Third say that if childcare costs increase by 10%, having another child would not be feasible.
DATE: 12th November 2024; New research from Pregnant Then Screwed finds that just small increases in childcare costs could have a catastrophic impact on employment rates and could further compound the declining birth rate issue.
According to the Early Years Alliance, 95% of childcare providers are set to increase their fees due to national insurance and minimum wage increases. PTS found that 9 in 10 parents feel stressed about potential childcare cost increases, whilst 92% believe that childcare providers should be exempt from the national insurance increases, just as schools are.
The survey finds that just small increases in nursery fees could have a catastrophic impact on families across the UK. Of those who say they want another child, almost a third (30%) say a 10% increase in childcare costs would make having another child not feasible. That figure increases to 41% of parents if childcare costs increase by 15%.
A quarter (24%) say they will have to leave the workforce if costs increase by 10%. Additionally, 59% of parents said that a rise in nursery fees would lead to at least one parent in their household reducing the number of hours they work or leaving work altogether.
Joeli Brearley, founder of Pregnant Then Screwed, said: ‘’Labour repeatedly promised to prioritise the early years. They paid lip services to the critical function it plays in supporting a robust economy and improving the outcomes for children. We are seeing no evidence whatsoever that childcare and early years education is being prioritised now that Labour is in Government. Working parents of young children cannot sustain any more cost increases; if the Government does not exempt providers from national insurance increases, the impact could be catastrophic.’’
Pregnant Then Screwed surveyed 3,847 parents who currently have a child in a nursery in the UK between 8th November – 11th November 2024 using a self-selecting survey via Typeform.
ENDS
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Research findings in full:
3847 parents who have a child in a UK nursery completed the survey
92% say their child goes to a nursery in England
5% say their child goes to a nursery in Scotland
2% say their child goes to a nursery in Wales
Of those who completed the survey
59% work full time
39% work part time
2% study
67% said ‘yes’ when asked: Would an increase in nursery fees make you consider reducing your child’s nursery hours?
59% said yes when asked: Would a rise in nursery fees lead to at least one parent in your household reducing the number of hours they work, or leaving work altogether? Whilst 21% said no.
When asked: How much would nursery fees have to increase for one parent in your household to have to stop working altogether?
16.6% said 16-20%
16.5% said 6-10%
11.9% said 11-15%
10.7% said 21-25%
7.3% said 0-5%
When asked: Would increased nursery fees have an impact on you being able to afford household essentials such as rent/mortgage payments, heating and food?
51.2% said ‘Strongly Agree’
33.8% said ‘Somewhat Agree’
7.2% said ‘Somewhat disagree’
5.6% said ‘Neither Agree or Disagree’
2.2% said ‘strongly disagree’
When asked: How much would nursery fees have to increase in order to force your household into debt?
15.3% said Nursery fees already force me/us into debt
11.2% said 16-20%
10.8% said 6-10%
7.9% said 11-15%
5.7% said 0-5%
1,730 parents who already have a child in childcare said they were thinking about having another child. Of those:
15.1% said that of childcare costs rise by 6-10% ot would make having another child unfeasible
14.9% said that of childcare costs rise by 0-5% ot would make having another child unfeasible
13.2% said that of childcare costs rise by 16-20% ot would make having another child unfeasible
11.5% said that of childcare costs rise by 11-15% ot would make having another child unfeasible
When asked: Do you believe childcare providers should be exempt from upcoming increases to national insurance costs for employers?
92.1% said Yes
5.2% said I don’t know
2.7% said no
When asked: Do you believe the government should provide additional funding to childcare providers to cover staff wage increases without raising costs for parents?
98.4% said yes
1.2% said I don’t know
0.3% said no
When asked: Is uncertainty about potential childcare cost increases causing you stress?
89% said yes
7.2% said no
3.8% said I don’t know
