I was recently asked to be involved in Childcare research by Family Investments and was shocked to learn that Bournemouth was one of the most expensive areas for Childcare in the whole country!
Here are the questions I was asked, and my responses:
How many children do you have and what are their name(s)?
I have five children – Abbey 19, Callan 15, Kian 11, Isaac 4 and Eliza 1
What do you think of the childcare provision and costs in your area?
I feel that the childcare provision in our area is extremely expensive and the reduction in tax credits has doubly impacted on families.
The reduction in the amount of childcare vouchers you can claim has hit hard, especially if you have more than one child
Higher tax rate earners hit doubly hard by the change in childcare vouchers
I was unable to afford returning to work after having Eliza as it meant that I would have to pay for three in childcare (one at an afterschool club) which would effectively wipe out my wages
Many childcare facilities are unable to provide flexible childcare – essential in the current job market.
Many jobs now require shift working and/or weekend work
I have just registered myself as a childminder, and was surprised by all the costs involved though. I charge a competitive rate and offer flexible hours which seems to be popular already (http://www.sticky-little-fingers.co.uk/)
Are you surprised of the bottom 10 placing of your area?
No, many of our local employers require shift working and most childcare providers don’t offer hours that fit in with work.
Most good nurseries are full and have long waiting lists
Here is the official report:
FAMILY INVESTMENTS REVEALS THE BRITISH TOWNS WITH MOST AFFORDABLE CHILDCARE FOR WORKING FAMILIES
New Childcare Affordability Report examines the average cost of childcare relative to earnings across Great Britain
- Stoke is the most affordable location in Great Britain for childcare. The West Midlands is an affordability hotspot, with four of the ten most cost effective urban areas located in the region
- In Great Britain today, a parent paying for 25 hours of childcare a week can expect to pay almost £5,000 over the course of year, a figure which is equivalent to 18.9% of average earnings
- Childcare costs relative to earnings were found to be least affordable in Ebbw Vale, South Wales
Today, award winning children’s savings provider Family Investments publishes the most comprehensive analysis of local childcare costs and affordability in Great Britain. Local authorities were surveyed and official earnings data compiled to establish affordability across counties. Results have been mapped against urban areas to highlight wide local variations in care affordability.
The national picture of childcare costs
<><> <><> <><> <><>
|
|
Average annual cost of childcare. Based on 25 hours per week
|
Gross average annual earnings per person
|
Average hourly earnings
|
Average hourly care costs
|
Number of hours work required to meet care costs
|
Average proportion of earnings required to meet 52 weeks of care
|
|
National average
|
£4,993
|
£26,357
|
£12.77
|
£3.84
|
391
|
18.9%
|
|
England
|
£5,023
|
£26,615
|
£12.87
|
£3.86
|
391
|
18.9%
|
|
Scotland
|
£4,955
|
£25,538
|
£12.44
|
£3.81
|
399
|
19.4%
|
|
Wales
|
£4,767
|
£23,795
|
£11.62
|
£3.67
|
411
|
20.0%
|
In Britain today, a parent paying for 25 hours of care a week can expect to pay £4,993 a year, a sum which is equivalent to 18.9% of average earnings.
There are however significant disparities in childcare costs at a local level. Stoke in the West Midlands was found to be the most affordable urban area and a parent paying for 25 hours care a week would need to set aside just 13.7% of their income or £2,925 over the course of the year. By contrast, care costs in Ebbw Vale, South Wales are equivalent to 28.2% of a parent’s earnings or £5,539 a year.
The West Midlands was found to be a hotspot for childcare affordability. Four of the ten most affordable urban areas are located in the region. The North West of England also featured prominently with three of the most affordable locations in the top ten with Bolton ranked third overall.
Neath in West Glamorgan is the most affordable location in Wales and while Scotland did not feature in the top ten, Galalshiels in the Borders ranked 12th overall with a parent needing to set aside 16.5% of their earnings to cover care costs.
Kate Moore, Head of Savings and Investments at Family Investments said, “Family Investments has developed the Childcare Affordability Report to provide parents with detailed information on a critical issue. Sixty five per cent of families regularly pay* towards their children’s care to enable parents to continue working. Across the country, these costs now equate to 18.9% of the average parent’s earnings, meaning that they effectively spend a fifth of their time working towards meeting care costs.
“Childcare has emerged as an important policy issue in recent months but the debate so far has focused on the national picture. The lack of correlation between local earnings and childcare costs highlighted in our report is stark. We urge those currently looking at childcare provision to investigate this disparity and identify whether more needs to be done to encourage greater provision, competition and ultimately greater affordability of care.
“Regardless of whether a parent works as a result of financial necessities or because of lifestyle considerations, employment should offer parents the ability to provide a financial safety net for their family. At a time when the overall financial burden parents face is increasing, employment should allow them the ability to save towards the future and provide for some of life’s major costs such as higher education. It is therefore only reasonable that care costs are fair and allow parents to achieve this.”
Families can explore how their area ranks against the national average by selecting county level data at the following web address – http://www.familyinvestments.co.uk/childcare
The 10 most and least affordable urban areas in the country
<><> <><> <><> <><> <><> <><> <><> <><> <><> <><> <><> <><> <><> <><> <><> <><> <><> <><>
|
Rank
|
Location
|
Average cost of childcare (childminder and nursery – 52 weeks)
|
Gross average annual earnings
(per individual)
|
Average hourly earnings
|
Average hourly care costs
|
Number of working hours require to meet care costs
|
Average proportion of earnings required to meet 52 weeks of care
|
|
1
|
Stoke, West Midlands
|
£2,925
|
£21,334
|
£10.74
|
£2.25
|
272
|
13.7%
|
|
2
|
Shrewsbury, West Midlands
|
£3,458
|
£25,102
|
£12.15
|
£2.66
|
285
|
13.8%
|
|
3
|
Bolton, North West
|
£3,394
|
£23,626
|
£10.74
|
£2.61
|
316
|
14.4%
|
|
4
|
Liverpool, North West
|
£3,501
|
£23,827
|
£11.83
|
£2.69
|
296
|
14.7%
|
|
5
|
Newtown, Powys
|
£3,627
|
£23,029
|
£10.95
|
£2.79
|
331
|
15.7%
|
|
6
|
Solihull, West Midlands
|
£4,621
|
£29,201
|
£14.77
|
£3.55
|
313
|
15.8%
|
|
7
|
Birkenhead, North West
|
£4,157
|
£26,042
|
£12.67
|
£3.20
|
328
|
16.0%
|
|
8
|
Dudley, West Midlands
|
£3,775
|
£23,390
|
£11.44
|
£2.90
|
330
|
16.1%
|
|
9
|
Neath, West Glamorgan
|
£3,776
|
£23,183
|
£11.02
|
£2.90
|
343
|
16.3%
|
|
10
|
Leicester, East Midlands
|
£4,341
|
£2,6429
|
£12.73
|
£3.34
|
341
|
16.4%
|
|
|
|
|
|
|
|
|
|
|
Rank
|
Location
|
Average cost of childcare (childminder and nursery – 52 weeks)
|
Gross average
annual earnings (per individual)
|
Average hourly earnings
|
Average hourly care costs
|
Number of hours work required to meet care costs
|
Average proportion of earnings required to meet 52 weeks of care
|
|
141
|
Newport, Gwent
|
£5,411
|
£23,761
|
£11.10
|
£4.16
|
487
|
22.8%
|
|
142
|
Carlisle, North West
|
£5,233
|
£22,879
|
£10.87
|
£4.03
|
481
|
22.9%
|
|
143
|
Bath, South West
|
£5,990
|
£25,948
|
£12.44
|
£4.61
|
482
|
23.1%
|
|
144
|
Gateshead, North East
|
£5,376
|
£22,942
|
£11.38
|
£4.14
|
472
|
23.4%
|
|
145
|
Blackburn, North West
|
£4,955
|
£21,053
|
£10.16
|
£3.81
|
488
|
23.5%
|
|
146
|
Bournemouth, South West
|
£5,927
|
£24,731
|
£11.72
|
£4.56
|
506
|
24.0%
|
|
147
|
Hackney, London
|
£7,626
|
£31,776
|
£15.84
|
£5.87
|
481
|
24.0%
|
|
148
|
Newcastle, North East
|
£5,923
|
£22,293
|
£11.21
|
£4.56
|
528
|
26.6%
|
|
149
|
Wembley, London
|
£7,048
|
£26,417
|
£12.62
|
£5.42
|
558
|
26.7%
|
|
150
|
Ebbw Vale, Gwent
|
£5,539
|
£19,624
|
£9.84
|
£4.26
|
563
|
28.2%
|
Are you shocked by these results?
I’d love to hear your thoughts!