Every year the Family and Childcare Trust collects statistics about childcare costs and availability in Britain.
Our data – collected from local authority Family Information Services – makes it possible to monitor changes in childcare costs and supply from year to year.
All our reports are widely used by policymakers and academics in all parts of the UK and beyond.
Family and Childcare Trust's annual review is a record of our achievements over the past financial year, including details of our funders, alongside details about our staff and members of our trustee board.
Family and Childcare Trust's annual review is a record of our achievements over the past financial year, including details of our funders, alongside details about our staff and members of our trustee board.
Access denied: A report on childcare sufficiency and market management in Eng...Family and Childcare Trust
Childcare provision is a crucial part of a modern state’s
infrastructure: it enables parents to work, improves
children’s outcomes and helps narrow the gap
between disadvantaged children and their peers. The
importance of childcare is now recognised and over
the last 20 years there have been many policy changes
that have aimed to make childcare more affordable
for families, through free early education, tax credits,
vouchers and the new tax-free childcare scheme. Most
recently, the Government has announced that it will
double the hours of free early education for three and
four year olds, with working parents offered 30 hours
per week by 2017. But over the years officials and
decision-makers have given less attention to the other
side of the childcare conundrum - the availability of
childcare. Today, shortages of early education places
in some areas are putting the Government’s new
childcare plans in jeopardy.
Family and Childcare Trust's annual review is a record of our achievements over the past financial year, including details of our funders, alongside details about our staff and members of our trustee board.
Webinar - Tracking the prospects of low income householdsPolicy in Practice
In this webinar Deven Ghelani, Policy in Practice, was joined by guest speaker Martin O'Neill, former Head of Benefits at Birmingham City Council. Together with Terrin Mathew, Policy in Practice's Technical Data Analyst, they discussed the role data visualisation can play in delivering anti-poverty strategies.
Taking four key recommendations from Birmingham's Child Poverty Commission report, Martin explained how Policy in Practice's data dashboard could be used to turn the recommendations into deliverable actions.
Policy in Practice is helping Croydon Council to target support and track the impact on residents, and to deliver a proactive, preventative approach to keeping people in their homes. Mark Fowler and the team were shortlisted for a LGC Award 2017 for Innovation for their People’s Gateway Enablement and Welfare Service, which features this work.
View these slides to also learn:
- How to use your data to target resources to individual households in need
- How the data is visualised and interrogated to reveal hidden pockets of poverty
- How the dashboard helps different council teams deliver complementary activity
The 2011 Report Card edition of the report card highlights the scale of the government’s challenge in delivering the Prime Minister’s commitment to make the UK the most family friendly country in Europe. The report shows how tough making the UK family friendly is given the economic climate and considerable squeeze on public and family finances.
Putting Children First: Session 2.2.B Aislinn Delany - Towards comprehensive ...The Impact Initiative
Putting Children First: Identifying solutions and taking action to tackle poverty and inequality in Africa.
Addis Ababa, Ethiopia, 23-25 October 2017
This three-day international conference aimed to engage policy makers, practitioners and researchers in identifying solutions for fighting child poverty and inequality in Africa, and in inspiring action towards change. The conference offered a platform for bridging divides across sectors, disciplines and policy, practice and research.
Family and Childcare Trust's annual review is a record of our achievements over the past financial year, including details of our funders, alongside details about our staff and members of our trustee board.
Family and Childcare Trust's annual review is a record of our achievements over the past financial year, including details of our funders, alongside details about our staff and members of our trustee board.
Access denied: A report on childcare sufficiency and market management in Eng...Family and Childcare Trust
Childcare provision is a crucial part of a modern state’s
infrastructure: it enables parents to work, improves
children’s outcomes and helps narrow the gap
between disadvantaged children and their peers. The
importance of childcare is now recognised and over
the last 20 years there have been many policy changes
that have aimed to make childcare more affordable
for families, through free early education, tax credits,
vouchers and the new tax-free childcare scheme. Most
recently, the Government has announced that it will
double the hours of free early education for three and
four year olds, with working parents offered 30 hours
per week by 2017. But over the years officials and
decision-makers have given less attention to the other
side of the childcare conundrum - the availability of
childcare. Today, shortages of early education places
in some areas are putting the Government’s new
childcare plans in jeopardy.
Family and Childcare Trust's annual review is a record of our achievements over the past financial year, including details of our funders, alongside details about our staff and members of our trustee board.
Webinar - Tracking the prospects of low income householdsPolicy in Practice
In this webinar Deven Ghelani, Policy in Practice, was joined by guest speaker Martin O'Neill, former Head of Benefits at Birmingham City Council. Together with Terrin Mathew, Policy in Practice's Technical Data Analyst, they discussed the role data visualisation can play in delivering anti-poverty strategies.
Taking four key recommendations from Birmingham's Child Poverty Commission report, Martin explained how Policy in Practice's data dashboard could be used to turn the recommendations into deliverable actions.
Policy in Practice is helping Croydon Council to target support and track the impact on residents, and to deliver a proactive, preventative approach to keeping people in their homes. Mark Fowler and the team were shortlisted for a LGC Award 2017 for Innovation for their People’s Gateway Enablement and Welfare Service, which features this work.
View these slides to also learn:
- How to use your data to target resources to individual households in need
- How the data is visualised and interrogated to reveal hidden pockets of poverty
- How the dashboard helps different council teams deliver complementary activity
The 2011 Report Card edition of the report card highlights the scale of the government’s challenge in delivering the Prime Minister’s commitment to make the UK the most family friendly country in Europe. The report shows how tough making the UK family friendly is given the economic climate and considerable squeeze on public and family finances.
Putting Children First: Session 2.2.B Aislinn Delany - Towards comprehensive ...The Impact Initiative
Putting Children First: Identifying solutions and taking action to tackle poverty and inequality in Africa.
Addis Ababa, Ethiopia, 23-25 October 2017
This three-day international conference aimed to engage policy makers, practitioners and researchers in identifying solutions for fighting child poverty and inequality in Africa, and in inspiring action towards change. The conference offered a platform for bridging divides across sectors, disciplines and policy, practice and research.
Family and Childcare Trust's annual review is a record of our achievements over the past financial year, including details of our funders, alongside details about our staff and members of our trustee board.
Are we there yet?: Five years on the road to addressing child poverty – a pre...McGuinness Institute
Are we there yet?: Five years on the road to addressing child poverty – a presentation on 31 May 2016 by Dr Russell Wills – Children’s Commissioner
To learn more go to www.occ.org.nz or www.childpoverty.co.nz
To learn more about TacklingPovertyNZ go to http://tacklingpovertynz.org
RPD Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community. It is compiled by the Research and Planning Department (RPD) of Yayasan MENDAKI.
The key highlights for this month are:
- Education Minister Chan Chun Sing announced that MOE will raise spending to $457 million over next five years to boost social science and humanities research
- Singapore Counselling Centre (SCC) study: More than 80% of S'pore teachers say Covid-19 pandemic has hurt their mental health
- Progressive Wage Model (PWM) boosts workers' income and strengthens family economy
News Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community. It is produced by the Research and Planning Department (RPD) of Yayasan MENDAKI.
The key highlights for this month are:
• The Singapore Budget will continue to provide support for sectors that face difficulties amid the Covid-19 pandemic and help Singaporeans manage concerns over the cost of living.
• Lower-income groups will benefit the most from the comprehensive set of measures laid out in the Budget to help everyone cope with the cost of living.
• National Trades Union Congress (NTUC) and MENDAKI sign Memorandum of Understanding (MOU) to help Malay-Muslim workers boost skills and employability.
Family and Childcare Trust's annual review is a record of our achievements over the past financial year, including details of our funders, alongside details about our staff and members of our trustee board.
RPD Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community. It is produced by the Research and Planning Department (RPD) of Yayasan MENDAKI.
The key highlights for this month are:
1. Singapore will have to put in place more stringent measures to bolster the security of digital banking
2. The upcoming increase in the goods and services (GST) tax will be tackled in Budget 2022, which will be unveiled on Feb 18.
3. Prime Minister Lee Hsien Loong and President Joko Widodo witnessed the signing and exchange of three agreements as well as an exchange of letters undertaking to bring them into force at the same time.
The 2012 Report Card indicated it is becoming difficult for the Prime Minister to stick to his commitment of creating a society which truly supports family life. The report card highlights that the condition of the economy continues to make life intensely difficult for millions of UK families, who currently face a triple squeeze of tax and benefit changes, high childcare costs and high costs of living.
RPD Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community. It is compiled by the Research and Planning Department (RPD) of Yayasan MENDAKI.
The key highlights for this month are:
1. Singapore’s GDP is forecasted to gradually grow to 4 to 6 per cent in 2021. The bulk of economic growth will come from trade and manufacturing sectors.
2. DPM Heng unveiled a $107 billion plan in his Singapore Budget 2021 speech, which includes a $11 billion COVID 19 Resilience Package.
3. M3@Jalan Besar was launched and its initiative aim to help residents cope with mental health issues and empower elderly residents to adopt digital tools.
RPD Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community.
It is compiled by the Research and Planning Department (RPD) of Yayasan MENDAKI.
The key highlights for this month are:
1. The fight against COVID-19 has entered a new phase as the Singapore government unveiled the comprehensive vaccination programme for the people.
2. Despite a challenging year, Singapore’s economy has received $17.2 billion in fixed asset investments in 2020.
3. The ninth M3 town in Geylang Serai was launched on 23rd January. Wisma Geylang Serai seeks to be a pillar of support for the community as it plans new initiative such as promoting lifelong learning and healthy lifestyle
Your feedback is important for us to continuously improve our resources and publications for our readers.
RPD Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community. It is compiled by the Research and Planning Department (RPD) of Yayasan MENDAKI.
The key highlights for this month are:
The new PSLE scoring system sees more pupils qualifying to take secondary school subjects at higher level as more pupils qualify for Express course and 98.4% progress to secondary school.
13,000 disadvantaged students to get more help to stay in school through after-school support and customised holiday programmes.
More organisations have beefed up mental health support such as organizing self-care activities, training ‘mental health first aiders’, creating portals to provide online mental health resources, and partnering with counselling organisations to provide employee assistance.
We held a workshop in Flintshire in April for local authorities who are curious about what their data can tell them. Hosted by Peter Carter and Terrin Mathew, attendees from across Wales and the North West compared notes about the challenges of the welfare reforms and the rollout of Universal Credit, and how they're each using their data now.
The workshop inspired people with stories of success elsewhere and helped them to build the case for using local authority held datasets to better target your support for vulnerable households.
For more information visit www.policyinpractice.co.uk, email hello@policyinpractice.co.uk or call 0330 088 9242.
News Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community. It is produced by the Research and Design Department (R&D) of Yayasan MENDAKI.
The key highlights for this month are:
• Higher grant among initiatives to give more support and respite to caregivers, many of whom are women.
• More going abroad to study from second half of last year; Rise in number of Singaporeans keen on studying in Japan and South Korea.
• Employers to receive over $145m in final JSS payouts to support wages of more than 289,500 local staff.
In the midst of the national soul-searching that followed the riots of August 2011, one explanation soon came to dominate: the idea that poor parenting had somehow paved the way for civil unrest. The Family and Parenting Institute invited a range of commentators and organisations to consider the pressures on modern parenting, what can be learnt from the reaction to the riots, and what these developments might mean for parenting policy. ‘Where now for parenting?’ brings together views from leading experts on the state of UK parenting
Every year the Family and Childcare Trust collects statistics about childcare costs and availability in Britain.
Our data – collected from local authority Family Information Services – makes it possible to monitor changes in childcare costs and supply from year to year.
All our reports are widely used by policymakers and academics in all parts of the UK and beyond.
Family and Childcare Trust's annual review is a record of our achievements over the past financial year, including details of our funders, alongside details about our staff and members of our trustee board.
Family and Childcare Trust's annual review is a record of our achievements over the past financial year, including details of our funders, alongside details about our staff and members of our trustee board.
Are we there yet?: Five years on the road to addressing child poverty – a pre...McGuinness Institute
Are we there yet?: Five years on the road to addressing child poverty – a presentation on 31 May 2016 by Dr Russell Wills – Children’s Commissioner
To learn more go to www.occ.org.nz or www.childpoverty.co.nz
To learn more about TacklingPovertyNZ go to http://tacklingpovertynz.org
RPD Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community. It is compiled by the Research and Planning Department (RPD) of Yayasan MENDAKI.
The key highlights for this month are:
- Education Minister Chan Chun Sing announced that MOE will raise spending to $457 million over next five years to boost social science and humanities research
- Singapore Counselling Centre (SCC) study: More than 80% of S'pore teachers say Covid-19 pandemic has hurt their mental health
- Progressive Wage Model (PWM) boosts workers' income and strengthens family economy
News Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community. It is produced by the Research and Planning Department (RPD) of Yayasan MENDAKI.
The key highlights for this month are:
• The Singapore Budget will continue to provide support for sectors that face difficulties amid the Covid-19 pandemic and help Singaporeans manage concerns over the cost of living.
• Lower-income groups will benefit the most from the comprehensive set of measures laid out in the Budget to help everyone cope with the cost of living.
• National Trades Union Congress (NTUC) and MENDAKI sign Memorandum of Understanding (MOU) to help Malay-Muslim workers boost skills and employability.
Family and Childcare Trust's annual review is a record of our achievements over the past financial year, including details of our funders, alongside details about our staff and members of our trustee board.
RPD Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community. It is produced by the Research and Planning Department (RPD) of Yayasan MENDAKI.
The key highlights for this month are:
1. Singapore will have to put in place more stringent measures to bolster the security of digital banking
2. The upcoming increase in the goods and services (GST) tax will be tackled in Budget 2022, which will be unveiled on Feb 18.
3. Prime Minister Lee Hsien Loong and President Joko Widodo witnessed the signing and exchange of three agreements as well as an exchange of letters undertaking to bring them into force at the same time.
The 2012 Report Card indicated it is becoming difficult for the Prime Minister to stick to his commitment of creating a society which truly supports family life. The report card highlights that the condition of the economy continues to make life intensely difficult for millions of UK families, who currently face a triple squeeze of tax and benefit changes, high childcare costs and high costs of living.
RPD Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community. It is compiled by the Research and Planning Department (RPD) of Yayasan MENDAKI.
The key highlights for this month are:
1. Singapore’s GDP is forecasted to gradually grow to 4 to 6 per cent in 2021. The bulk of economic growth will come from trade and manufacturing sectors.
2. DPM Heng unveiled a $107 billion plan in his Singapore Budget 2021 speech, which includes a $11 billion COVID 19 Resilience Package.
3. M3@Jalan Besar was launched and its initiative aim to help residents cope with mental health issues and empower elderly residents to adopt digital tools.
RPD Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community.
It is compiled by the Research and Planning Department (RPD) of Yayasan MENDAKI.
The key highlights for this month are:
1. The fight against COVID-19 has entered a new phase as the Singapore government unveiled the comprehensive vaccination programme for the people.
2. Despite a challenging year, Singapore’s economy has received $17.2 billion in fixed asset investments in 2020.
3. The ninth M3 town in Geylang Serai was launched on 23rd January. Wisma Geylang Serai seeks to be a pillar of support for the community as it plans new initiative such as promoting lifelong learning and healthy lifestyle
Your feedback is important for us to continuously improve our resources and publications for our readers.
RPD Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community. It is compiled by the Research and Planning Department (RPD) of Yayasan MENDAKI.
The key highlights for this month are:
The new PSLE scoring system sees more pupils qualifying to take secondary school subjects at higher level as more pupils qualify for Express course and 98.4% progress to secondary school.
13,000 disadvantaged students to get more help to stay in school through after-school support and customised holiday programmes.
More organisations have beefed up mental health support such as organizing self-care activities, training ‘mental health first aiders’, creating portals to provide online mental health resources, and partnering with counselling organisations to provide employee assistance.
We held a workshop in Flintshire in April for local authorities who are curious about what their data can tell them. Hosted by Peter Carter and Terrin Mathew, attendees from across Wales and the North West compared notes about the challenges of the welfare reforms and the rollout of Universal Credit, and how they're each using their data now.
The workshop inspired people with stories of success elsewhere and helped them to build the case for using local authority held datasets to better target your support for vulnerable households.
For more information visit www.policyinpractice.co.uk, email hello@policyinpractice.co.uk or call 0330 088 9242.
News Bites is a monthly scan covering issues and trends surfaced in various local mainstream media sources that would be of relevance to the Malay/Muslim community. It is produced by the Research and Design Department (R&D) of Yayasan MENDAKI.
The key highlights for this month are:
• Higher grant among initiatives to give more support and respite to caregivers, many of whom are women.
• More going abroad to study from second half of last year; Rise in number of Singaporeans keen on studying in Japan and South Korea.
• Employers to receive over $145m in final JSS payouts to support wages of more than 289,500 local staff.
In the midst of the national soul-searching that followed the riots of August 2011, one explanation soon came to dominate: the idea that poor parenting had somehow paved the way for civil unrest. The Family and Parenting Institute invited a range of commentators and organisations to consider the pressures on modern parenting, what can be learnt from the reaction to the riots, and what these developments might mean for parenting policy. ‘Where now for parenting?’ brings together views from leading experts on the state of UK parenting
Every year the Family and Childcare Trust collects statistics about childcare costs and availability in Britain.
Our data – collected from local authority Family Information Services – makes it possible to monitor changes in childcare costs and supply from year to year.
All our reports are widely used by policymakers and academics in all parts of the UK and beyond.
Family and Childcare Trust's annual review is a record of our achievements over the past financial year, including details of our funders, alongside details about our staff and members of our trustee board.
An Institute for Fiscal Studies report, commissioned by the Family and Parenting Institute, was the first to reveal the impact of national austerity measures and welfare reform on family income and prospects for poverty rates and income for different family types up to the year 2015.
The Ipsos MORI report, Family Matters, followed eleven families feeling the strain from depressed incomes, rising living costs and cuts to benefits and services. The report provides insight into the lived experiences of modern families away from the policy and political debates that dominate discourse about families. The key drivers of family fragility – whether financial, emotional, relational or physical – were the four C’s: cost of living, cars, credit and childcare.
Research published in February 2014 shows a growing number of local authorities across England are failing in their legal duties to families to provide outreach and childcare brokerage services.
Every year the Family and Childcare Trust collects statistics about childcare costs and availability in Britain.
Our data – collected from local authority Family Information Services – makes it possible to monitor changes in childcare costs and supply from year to year.
All our reports are widely used by policymakers and academics in all parts of the UK and beyond.
Increasing numbers of parents do not have a standard nine-to-five job; they may work shifts, have zero-hour contracts, unforeseen overtime or other unpredictable hours. These atypical work patterns can present childcare challenges, if partners or relatives cannot provide informal childcare. Two of our reports examine the scale of these challenges and present solutions to help meet this specific childcare need.
The poll Time to care: generation generosity under pressure shows that grandparents have given a total of £8 billion in the past year to pay for a range of grandchildren’s needs, and that nearly two million grandparents have given up a job, reduced their hours or taken time off work to look after their grandchildren.
A two-part report published in February 2004. Part one details and analyses the results of a MORI poll, which found that 84% of parents felt that companies targeted their children too much. It also sets out the Family and Parenting Institute’s recommendations and looks at how other countries approach the issue. Part two presents the full report of a conference on marketing to children, which brought together opinion formers and policy makers in an open debate on the topic.
There has been an impassioned debate about children’s wellbeing in Britain since a 2007 UNICEF report on the subject put the UK at the bottom of a list of 21 rich countries.
In our report, we use data from the 2005 Families and Children Study (FACS) to look at England, Scotland and Wales, and compare income and wellbeing indicators in all three countries.
Adjusted incomes (for what families can buy with it) are slightly smaller for Child poverty is greater in England than in Scotland and Wales, and low incomepoorer families tend to have slightly lower purchasing power, and child poverty is greater in England than in Scotland and Wales, but England fares better than its smaller neighbours when it comes to key wellbeing indicators, such as health, housing and child behaviour.
We argue that, when comparing different countries on the British mainland, income by itself is not the best measure of children's wellbeing.
The Family and Childcare Trust briefs MPs and peers on legislation and policy issues affecting families.
These briefings are also helpful for anyone who wants a summary of the evidence, research findings and subsequent recommendations on key areas of family and children policy.
Over the last Parliament the cost of a part-time nursery place for a child under two has increased by 32.8 per cent. A family paying for this type of care now spends £1,533 more this year than they did in 2010, while wages have remained largely static.
Every year the Family and Childcare Trust conducts a
survey to gather information about the cost of holiday
childcare and its availability across Britain. The data
– collected from local authorities – makes it possible
to monitor changes in the costs and availability of
childcare during school holiday periods and identifies
differences in provision across the regions and nations
of Britain. This year we have also undertaken an
additional survey of parents, to help us understand their
experiences of holiday childcare. The results of both
surveys are included in this report which complements
our annual survey of childcare costs that we release
every spring.
This years’ Holiday Childcare Survey, the 13th in the
series, is released at a time of heightened debate
around the cost of childcare among politicians, as well
as the configuration of the school year. While some
parents are lucky and have access to high quality
affordable holiday childcare, our results show that
many families face a holiday childcare lottery of high
costs and patchy provision. Despite the legal obligations
to provide enough childcare for working parents, only
27 per cent of English local authorities and 6 per cent in
Wales have enough provision for this group of families
and these gaps have increased rather than decreased
since the implementation of the Childcare Act 2006. All
this takes a toll on families, with nearly one in five (17
per cent) of parents in our survey taking sick leave over
the holiday period in order to provide childcare.
This invited presentation for the Institute of Health Visiting Leadership Conference gives a DPH view on the future of Child Public Health and the need for a systems approach
London is the richest region in the UK, but nearly a quarter of its children live in poverty. Just 63.3 per cent of mothers with dependent children are employed in London in 2013, compared with 72.9 per cent in the rest of the UK. The state of childcare provision in the capital is a major cause of these economic paradoxes. Childcare for the under-fives is 28 per cent more expensive than the British average. There are also major gaps in provision for all types of childcare, but they are particularly acute for those who work outside normal office hours or irregularly.
The Family and Childcare Trust’s London Childcare Report is its most detailed study to date on childcare in the capital, analysing childcare provision and costs, free childcare places, and whether London boroughs are meeting the childcare needs of working parents.
About a third of UK families use informal (unregulated) childcare from grandparents, other relatives, friends and babysitters. However, little is known about informal childcare or the factors that are associated with its use. From 2010-2012, we undertook a two-year study of informal childcare, with funding from the Big Lottery.
During most of June 2020, Special Needs Jungle offered a survey of to our readers, to ask them about some of the aspects of support their children with special educational needs and disabilities (SEND) had received during lockdown. This period was over two months after schools had closed and included the period when all children with EHCPs and selected year groups in primary should have been returning. It also included some specialist colleges that were allowed to reopen from June 15th.
Find the main article here: https://www.specialneedsjungle.com/coronavirus-send-education-survey/
Tweddle's joint submission to 'Victoria's Vulnerable Children Inquiry'Tweddle Australia
Victoria's early parenting centres, including Tweddle, have urged the Protection Victoria's Vulnerable Children Inquiry Panel to recommend strengthening support to families in the critical early years and to invest in therapeutic early intervention and prevention programs for families of infants and children up to the age of 4.
For more information about the inquiry and its terms of reference see here - http://bit.ly/jEJ5dn
About a third of UK families use informal (unregulated) childcare from grandparents, other relatives, friends and babysitters. However, little is known about informal childcare or the factors that are associated with its use. From 2010-2012, we undertook a two-year study of informal childcare, with funding from the Big Lottery.
Throughout my research, I have found that Low wages, unemployment, low income families’ high expenses are the major reasons which creates problem of finance and that lead poverty
Every year the Family and Childcare Trust collects statistics about childcare costs and availability in Britain.
Our data – collected from local authority Family Information Services – makes it possible to monitor changes in childcare costs and supply from year to year.
All our reports are widely used by policymakers and academics in all parts of the UK and beyond.
The Family and Childcare Trust briefs MPs and peers on legislation and policy issues affecting families.
These briefings are also helpful for anyone who wants a summary of the evidence, research findings and subsequent recommendations on key areas of family and children policy.
The Family and Childcare Trust briefs MPs and peers on legislation and policy issues affecting families.
These briefings are also helpful for anyone who wants a summary of the evidence, research findings and subsequent recommendations on key areas of family and children policy.
A wide-ranging examination of international research and other literature that analyses current definitions, theoretical models and measurement tools, and examines quality issues such as validity and transferability, as well as the conceptual and practical challenges of measuring family wellbeing. It considers whether existing datasets and surveys could be used for measuring family wellbeing and proposes future directions for such research in the UK. It also includes comprehensive appendices that detail the many concepts and measures that have been identified in the literature. Download can government measure family wellbeing report.
In 2011 the Prime Minister proposed implementing a family test for all domestic policies. This paper was the Family and Parenting Institute’s initial response to the proposal. Family and Parenting Institute welcomed the concept and argued that family-proofing domestic policies would make for a more coordinated approach across different Departments. The report considers what would be needed to make a family test a success, including the need to develop more than a checklist, tackling culture as well as process, improving consultation and dialogue with families, and committing to independent assessment of any progress.
Between March 2004 and March 2011, the Family and Parenting Institute managed the Parenting Fund on behalf of successive UK governments. The parenting fund was the largest and most successful scheme ever to support UK parenting.
The Parenting Fund provided support to a web of grassroots organisations across the country which, in turn, supported the most vulnerable families in their communities. The families who were helped were experiencing problems including intergenerational unemployment, relationships marked by conflict, drink and drug abuse, and frequent contact with the police.
This report examines the success of the fund and the Family and Parenting Institute’s role in administering funding
Coalition Prime Minister David Cameron pledged to make Britain a truly family friendly country. This pledge created an opportunity for the government to 'family-proof' its new policies, creating conditions that really help families thrive. However, as the 2010 Report Card shows, there is a considerable distance to go before this aspiration can be achieved.
The poll Time to care: generation generosity under pressure shows that grandparents have given a total of £8 billion in the past year to pay for a range of grandchildren’s needs, and that nearly two million grandparents have given up a job, reduced their hours or taken time off work to look after their grandchildren.
The impact of spending cuts on services to children and families in eight local authorities. Drawing on interviews and analysis of revenue spending carried out by ESRO researchers, Families on the front line? examines children’s services budgets in eight different local authorities in England over two financial years (2011-12 and 2012-13).
Council officers described the efforts to shield families from the worst effects of this round of cuts, including the bold re-design and integration of services to families and sweeping cuts to back-office functions. But they predict that any further savings will be far more difficult to find – and are likely to hit front line services even harder.
The Families in the Age of Austerity final summary of the project draws these strands together, presenting a multi-dimensional picture of family life through an age of austerity. Through the report the Family and Childcare Trust also highlights a series of policy recommendations to help families cope with the pressures of austerity.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Presentation by Jared Jageler, David Adler, Noelia Duchovny, and Evan Herrnstadt, analysts in CBO’s Microeconomic Studies and Health Analysis Divisions, at the Association of Environmental and Resource Economists Summer Conference.
ZGB - The Role of Generative AI in Government transformation.pdfSaeed Al Dhaheri
This keynote was presented during the the 7th edition of the UAE Hackathon 2024. It highlights the role of AI and Generative AI in addressing government transformation to achieve zero government bureaucracy
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
A process server is a authorized person for delivering legal documents, such as summons, complaints, subpoenas, and other court papers, to peoples involved in legal proceedings.
1. Jill Rutter
Katherine Stocker
Childcare Costs Survey 2014
Sponsored by
Even part-time childcare costs outstrip the average mortgage. For a family of
two children, the cost for one child in part-time nursery care and one in an after
school club is £7,549 a year compared to the average UK mortgage of £7,207.
29%
2. Family and Childcare Trust
Childcare Costs Survey 2014 02
Contents
Key findings and areas for action. . . . . . . . . . . . . . . 3
Background.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Childcare costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Changes in costs over time. . . . . . . . . . . . . . . . . . . . . 11
The impact of childcare costs on families.. 12
Why is childcare so expensive?.. . . . . . . . . . . . . . . 14
Childcare supply.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Places for two-year-old children who
qualify for free early education. . . . . . . . . . . . . . . . 18
Fixing the system.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Acknowledgements
The Family and Childcare Trust would like to thank all
local authority staff who helped compile the data for
this survey. We would also like to thank Computershare
Voucher Services and Community Playthings who have
funded this research and its dissemination.
About the authors
Jill Rutter is Head of Policy and Research at the Family
and Childcare Trust. Over the last two years she has
led a major international study on informal childcare
and the organisation’s annual childcare costs surveys.
Previously Jill was a senior research fellow in migration
at the Institute for Public Policy Research. Jill has also
lectured in education at London Metropolitan University
and worked in as a policy advisor at the Refugee
Council. Her publications include Refugee Children
in the UK (Open University Press, 2006) and Informal
Childcare: Choice or Chance (Daycare Trust, 2012).
Katherine Stocker was a research assistant at the
Family and Childcare Trust. She has recently graduated
with an MSc in Public Health Nutrition and is now
working as a healthy eating adviser in Lambeth’s
children’s centres.
About the Family and
Childcare Trust
The Family and Childcare Trust works to make the UK
a family friendly society where all parents and children
have the resources they need to thrive. The charity
was forced in 2013 as a result of a merger between
Daycare Trust and the Family and Parenting Institute.
Collectively both organisations have almost 40 years’
experience of policy and campaigning on issues
affecting families. The Family and Childcare Trust
undertakes research and policy advocacy. It also works
with parents, businesses and government in order to
serve families better.
About Computershare
Voucher Services
Computershare Voucher Services (CVS) is the
UK’s largest dedicated childcare voucher provider,
supporting over 100,000 working parents, more than
14,000 organisations and over 87,000 carers each
month. Its size and long involvement in the market
means that CVS has vast experience of the childcare
vouchers industry, reinforced by significant technology
enhancements which benefit its diverse customer
base, spanning every sector, from some of the UK’s
largest corporations to small businesses. It is also a
founding member of the Childcare Voucher Providers
Association (CVPA) which represents childcare voucher
providers and sets the benchmark for standards in the
industry to ensure families and employers receive the
highest standard of service from voucher providers.
For more information visit:
www.computersharevoucherservices.com
About Community Playthings
A sound understanding of child development underpins
Community Playthings’ product design. Manufactured
in the UK, furniture and equipment supports children’s
creativity, learning and play in schools and nurseries
across the private, voluntary and public sectors.
For more information visit:
www.communityplaythings.co.uk
3. Family and Childcare Trust
Childcare Costs Survey 2014 03
Key findings and areas for action
Childcare is something that affects most of us, as
parents, as grandparents, as practitioners and as tax
payers. Over half of all families with children – over four
million – use formal childcare every year. Successive
governments have recognised its value to children,
families, society and the economy and it now spends
£6 billion supporting childcare every year. Indeed,
during the course of the current parliament, the
government will have put an additional £1 billion into
supporting childcare1
. Yet, since 2009, prices have gone
up by 27 per cent while wages have remained the
same2
, making childcare ever more unaffordable for
parents.
Every year the Family and Childcare Trust collects
information about childcare costs and availability in
Britain. The data makes it possible to monitor changes
in childcare costs and availability from year to year and
identify differences in childcare provision across the
regions and nations of Britain.
This year’s survey, the 13th in the series, has found that
costs for childcare have continued to increase, putting
extra pressure on families’ budgets. The survey also
highlights serious and ongoing gaps in provision across
the country for working parents, school-aged children,
disabled children, those living in rural areas and two-
year-olds who qualify for free early education.
Key findings
Childcare costs
►► The cost of sending a child under two to nursery
part-time (25 hours) is now £109.89 per week in
Britain or £5,710 per year.
►► For a family with two children in full-time childcare,
the yearly bill is £11,7003
. This makes childcare costs
62 per cent higher than the cost of the average
mortgage for a family home.
►► Over the last five years childcare costs have risen
27 per cent – meaning parents pay £1,214 more in
2014 than they did in 2009.
1 Department for Education, 2013.
2 Family and Childcare Trust, 2013a.
3 Based on a two-year-old in 42 hours provision and a five year old in
an after school club.
►► Most parents buying full-time care contribute 20-30
per cent of their gross income on childcare.
►► The average cost of an after-school club is now
£48.19 per week in Britain or £1,830 per year.
Childcare supply
►► Just under half (49 per cent) of local authorities had
enough childcare for working parents.
►► Only a third (33 per cent) had enough childcare for
children aged 5-11. This has worsened in the last
five years.
►► Three quarters (75 per cent) of local authorities do
not have enough childcare for disabled children.
Free early education for two-year-olds
►► Over 30,000 of England’s poorest two-year-olds
miss out on free nursery education. This is over one
quarter (26 per cent) of this cohort.
►► There are big differences between local authorities
in the proportions of two-year-olds receiving free
early education. In London just 51 per cent of
eligible children had been placed by November
2013.
►► There are 37 local authorities where less than 60
per cent of eligible two-year-olds had been placed
by November 2014, of which 25 were in London.
Areas for action
Our research shows that the current childcare system
is not working for anyone. Children are losing out on
vital early education and families remain trapped
in poverty because they cannot make work pay.
Childcare providers struggle with debts. Women fail to
return to the labour market after they have children
and the economy loses their skills and their taxes. The
state faces greater welfare bills and high administrative
costs for delivering a complex support system.
4. Family and Childcare Trust
Childcare Costs Survey 2014 04
Key findings and areas for action
The priority must be to address the increasing costs for
parents and making work pay. In the short-term, the
steps that will most effectively meet these aims and
support families are to:
►► Extend free early education to all two year olds.
►► Extend the pupil premium to our most
disadvantaged two, three and four year olds.
►► Make better use of school premises and children’s
centres to provide high quality and flexible childcare
provision.
►► Uprate Working Tax Credits to account for childcare
cost increases since 2005.
►► In future, increase support with childcare costs
in Universal Credit to a minimum of 85 per cent for
all parents.
►► Effectively enforce the duty on local authorities to
provide sufficient childcare.
But these measures are only a sticking plaster. They will
not solve the problems of high costs, low quality care
and complexity in the system. Childcare will remain
unaffordable for many families and its costs a barrier
to parents returning to work – shutting them out of the
labour market and dependent on benefits.
Ten years on from the Government’s 2004 childcare
strategy, bold reform is needed to address the UK’s
childcare challenges. We need a childcare system that
gives children the best start in life and that enables
parents to remain in work.
The run up to a general election is a key opportunity
for political parties to look at reform of childcare
provision. Over the next year we will be setting out our
vision for childcare – and we want to see all political
parties commit to a long-term strategy that delivers for
providers, for parents and, crucially, for children.
Table One: Average weekly childcare costs by region and nation, 2014
Region/Nation Nursery
25 hours
(under 2)
Nursery
25 hours
(2 and over)
Childminder
25 hours
(under 2)
Childminder
(2 and over)
After-school
club 15
hours
Childminder
after-school
pick up
East of England £111.90 £105.02 £121.28 £120.45 £51.13 £58.37
East Midlands £94.30 £97.19 £86.27 £86.05 £46.48 £61.84
London £140.12 £136.93 £136.40 £138.77 £49.04 £93.83
North East £108.24 £102.66 £90.88 £90.09 £49.52 £55.72
North West £98.00 £97.58 £84.81 £89.27 £49.27 £60.59
South East £130.08 £121.58 £110.32 £115.86 £47.68 £66.10
South West £109.70 £104.96 £100.48 £99.54 £50.75 £61.54
West Midlands £112.17 £101.85 £85.52 £82.85 £46.85 £62.37
Yorks and Humberside £94.03 £87.94 £90.68 £90.75 £44.84 £62.38
England regional average £110.95 £106.19 £100.74 £101.51 £48.40 £64.75
Scotland average £106.04 £102.06 £95.59 £96.84 £49.54 £77.90
Wales average £103.17 £102.28 £94.24 £94.24 £45.98 £55.61
Britain average of regions
and nations
£109.89 £105.52 £99.77 £100.52 £48.19 £65.08
Source: Family and Childcare Trust Annual Childcare Costs Survey, 2014
5. Family and Childcare Trust
Childcare Costs Survey 2014 05
Background
Working parents with young children use many
different forms of childcare. Choices depend on many
factors including family income, childcare availability,
parental employment patterns and the age of children.
In England in 2013, 78 per cent of families4
with children
under 15 years used childcare with 10 per cent of them
using a day nursery, most of which are run by private or
voluntary sector (not-for-profit) organisations. A further
5 per cent of families sent their children to sessional
pre-schools, which offer part-time provision. Some
10 per cent of families sent their children to nurseries
attached to primary schools, or nursery schools. This
public sector provision is mostly for children over the
age of three, where they usually receive 15 free hours
of early education funded by the Government. Another
5 per cent of families use registered childminders to
care for their children.
When children reach school-age, many parents use
breakfast and after-school clubs to look after their
children before and after the school day. Nearly half
(43 per cent) of this form of childcare is run by private
organisations, although 32 per cent is run by schools
or local authorities5
. In England in 2013, some 6 per
cent of families with children under 15 were using
breakfast clubs and 36 per cent were using after-
school clubs. Other families use childminders to pick up
their children after school, with five per cent of families
with children aged between five and seven using this
form of childcare in 2013. Families may also use holiday
childcare, particularly during half-term periods and
over the summer holidays (Family and Childcare Trust,
2013b). Parents of older children may also use after-
school and holiday arts, sports and leisure activities
as surrogate forms of childcare, with these activities
usually run by schools, local authorities, sports clubs
and third sector organisations.
Other families rely on informal – unregulated -
childcare, with over a quarter of families (27 per
cent) using grandparents to provide childcare during
term-time, 4 per cent using older siblings, 6 per cent
using other relatives and 6 per cent using friends
and neighbours. While not a form of childcare, ‘shift-
parenting’ is another family caring strategy, where
parents work at different times, although this is not an
option for some single parents. Informal childcare and
shift-parenting are frequently used where parents have
4 All family childcare use data comes from the 2012-13 Childcare and
Early Years Survey of Parents (Department for Education 2014).
5 Source: Department for Education, 2012a.
‘atypical’ work patterns such as shift-work or irregular
work patterns, as formal childcare may be difficult to
find (Rutter and Evans, 2011).
Childcare is clearly essential for families in Britain. It
is an investment in the future of children, and also in
parents who need affordable childcare in order to
return to or remain in work. But until the late 1990s
many parents found it difficult to find affordable
childcare and as a consequence mothers often left the
labour market when they had children. The ability of
many families to escape from poverty was therefore
constrained.
By the mid-1990s, as a result of campaigning, the
demand for childcare was being heard and politicians
across all the main political parties acknowledged
this need. In 1998 the National Childcare Strategy
committed government to increasing the availability
and affordability of early childhood education and
childcare in England and Wales (Department for
Education and Employment, 1998). A further ten-year
childcare strategy was published in 2004 which paved
the way for the Childcare Act 2006 (HM Treasury,
2004). This legislation obliges all English and Welsh local
authorities to ensure sufficient childcare for working
parents and those undertaking training or education
with the intention of returning to work. At the beginning
of 2014 there was no equivalent legislation in Scotland,
although the 2008 Early Years’ Framework requires
that local authorities have ‘a strategic view of childcare
accessibility’ and has a longer-term objective that
families have ‘access to integrated pre-school and
childcare services in every community matched to an
assessment of local demand’ (Scottish Government,
2008). This guidance will be strengthened as the
Children and Young People (Scotland) Act 2014
proposes a new duty on local authorities to ensure
enough childcare for pre-school children.
The sufficiency duty, outlined in the Childcare Act
2006, obliges local authorities in England and Wales to
assess supply and act to fill gaps in provision, with the
Early Years’ Framework in Scotland providing a similar
although less explicit obligation. As a consequence
of these duties the number of childcare places has
expanded dramatically in all parts of Britain, although
local authority childcare sufficiency analysis– and
Family and Childcare Trust annual childcare surveys -
still shows gaps in provision.
6. Family and Childcare Trust
Childcare Costs Survey 2014 06
Background
In the years since the 1998 strategy a number of
initiatives have helped make childcare more affordable.
In England, Scotland and Wales all young children
receive some free early education, usually provided by
nurseries. In England all three and four-year-olds and
the 40 per cent most deprived two-year-olds get 570
hours of free early education annually, which amounts
to 15 hours per week over 38 weeks of the year.
Provisions in the Children and Young People (Scotland)
Act 2014 propose increasing the amount of free early
education for three and four year olds in Scotland to
600 hours per year, with a target of August 2014 given
for implementing this entitlement. In Wales, all three
and four-year-old children are eligible for a free part-
time nursery place, typically ten hours per week during
the school year, although some local authorities offer
more.
The current infrastructure of support also includes help
with childcare costs through the childcare element
of Working Tax Credit. At present working parents on
low incomes can receive up to 70 per cent of their
childcare costs through tax credits, up to a maximum
cost of £175 per week for one child in childcare and
£300 per week for two or more children. This means
that a family can receive up to £122.50 help with
childcare costs for one child and up to £210 for two
or more children, although for almost all families the
amount of help is much lower. These levels were
set in 2005 and have not been uprated since then,
despite big increases in childcare costs over this
period. Moreover, it is only the most deprived working
families that receive this type of help, as the childcare
payment starts to taper off steeply if the first earner in
a household earns more than £15,910 per year before
tax and National Insurance are deduced.
The tax credit system is now being merged into the
single Universal Credit, with 2017 being the target date
for its full implementation. Within Universal Credit the
overall maximum support levels will remain, although
these will be now calculated monthly. Universal
Credit will also be administered online and these two
changes will enable greater flexibility for parents whose
childcare costs fluctuate from week to week. This
is particularly important for parents who face a big
increase in childcare costs during the school holidays.
Parents who work less than 16 hours per week will
qualify for help with childcare costs through Universal
Credit, a move that eliminates some of the benefit
‘cliff edges’ that can disincentivise moving back into
work. In March 2013 the Government announced that
it will be spending £1 billion more on childcare. Some
of this money will be spent on an increase in the level
of childcare support through Universal Credit to 85 per
cent of costs, up from 70 per cent that parents receive
today. This increase is due for implementation in 2016,
although at the time of writing this additional level of
support will be restricted to families where both parents
are paying income tax (HM Treasury, 2013).
Some parents also receive help with their childcare
costs through employer-supported childcare vouchers,
either as an additional benefit on top of their salary
or as a salary sacrifice before they pay tax. Those
receiving childcare vouchers can save up to £55 per
week if they are basic rate taxpayers or higher rate
taxpayers who joined a voucher scheme before 5
April 2011. Childcare vouchers can also be ‘banked’
and used at a time when childcare costs may be
particularly high, for example, during the school
holidays. However, the Government has announced
that it will phase out the present employer-supported
childcare voucher scheme and replace it with a tax
free ‘voucher’ of £1,200 per year in 2015 (HM Treasury,
2013). This support will be available to all families where
parents work and whose household income is less
than £300,000 per year. There will, however, be age
restrictions on the £1,200 voucher and initially this will
only be available to help with under-fives’ childcare.
This new help with childcare costs is welcome, although
some poor families will not benefit from it.
Overwhelmingly it will be families in the top half of the
income distribution who will benefit from the £1,200
voucher support. Analysis by the Resolution Foundation
36 suggests that 80 per cent of the 2 million beneficiaries
of this voucher will be in the top 40 per cent of the
income distribution and almost no families in the bottom
40 per cent. While some of the latter group of families
will receive additional support by increasing Universal
Credit support from 70 per cent to 85 per cent of costs,
there are families that will miss out on this too.
Families on the lowest incomes – those where parents
7. Family and Childcare Trust
Childcare Costs Survey 2014 07
Background
There may be as many as 930,000 families who
earn too little to pay income tax, who include many
single parents in low paid, part-time jobs, as well as
households where just one parent earns enough
to pay income tax. Many child poverty campaigners
are calling for all working families receiving Universal
Credit to get 85 per cent of their childcare costs,
irrespective of their payment of income tax.
If necessary the increased cost to the Exchequer could
be met by lowering the maximum income threshold
for the £1,200 voucher.
Others are calling for more radical reform to support
for childcare costs. As the date for the next election
approaches, all political parties are considering this issue
as part of their manifesto commitments. The Labour
Party has committed itself to a guaranteed after-school
childcare place and to extending free early education
for three and four-year-olds to 25 hours per week.
Liberal Democrat policy is also to increase the hours of
free early education. The 2014 Childcare Costs Survey
has been undertaken at a time when childcare has risen
up the political agenda. We hope that its findings will
inform debate and remind policy makers and politicians
of the importance of childcare.
6 www.resolutionfoundation.org
are not paying income tax – will not qualify for this
increased level of support.
8. Family and Childcare Trust
Childcare Costs Survey 2014 08
Methodology
The Family and Childcare Trust has carried out an
annual survey of childcare costs and sufficiency since
2002. In December 2013 a survey was sent to all local
authority Family Information Services in England
and Wales and Children’s Information Services, their
equivalent in Scotland. This requested details about the
costs and availability of different types of childcare in
Britain. The same information has been collected since
2002, enabling time series analysis to take place.
The Childcare Act 2006 and its accompanying
statutory guidance obliges local authorities in England
and Wales to keep up-to-date data about childcare
costs and its sufficiency. Local authorities were asked
to provide costs for 25 hours and 50 hours of childcare,
provided by nurseries or childminders. The former
figure – 25 hours – is the typical amount of childcare
that a parent who works part-time might purchase, or
a parent in full-time employment who purchases an
extra 25 hours childcare on top of the 15 free hours
of early years’ provision available in England. We also
asked for the average price for 15 hours childcare in
an after-school club and for childminders who pick up
children from school. Regional and national average
costs for the different forms of childcare were then
calculated from the information supplied by local
authorities.
This year we also calculated an average hourly
nursery cost for a child aged two or under, weighted
to take into account nursery ownership patterns and
populations. Proportionally more parents live in London
and the South East where childcare costs are higher.
Our weighting fomula takes into account population
distrubution. Most children who attend nurseries attend
ones that are run by private and voluntary sector
organisations, which tend to be more expensive than
those run by schools and local authorities7
. Weighting
the survey responses enabled us to take this into
account and come up with a more precise calculation
of the parents’ childcare costs.
7 Some 91 per cent of nurseries are run by private and voluntary
sector organisations in England (Department for Education, 2012).
It is important to emphasise that this survey does not
ask childcare providers to estimate what their services
cost to deliver. This is likely to be a different amount
than the prices information we requested because of
the complex systems of cross-subsidy and the array of
business models that different childcare providers use.
The survey also represents average costs to parents
and there will be parents who have higher or lower
costs than implied in the survey.
The survey also examines childcare supply and looks at
whether local authorities have sufficient childcare for
different groups of children. In England, Scotland and
Wales local authorities are required to assess childcare
supply. (The legal requirements that underpin this duty
are discussed later). The survey asked local authorities
to draw on their most recent childcare sufficiency data
and report if they had enough childcare for under 2s,
2-year-olds, 3-4 year olds, 5-11 year olds, 12-14 year
olds, disabled children, children who live in rural areas,
parents who work full-time and parents who have
atypical work patterns such as shift workers.
In order to ensure an adequate response rate in all the
regions and nations of Britain, Freedom of Information
Act requests were used collect the information where
the survey methodology had failed. Responses were
received from 184 local authorities, a response rate of
89 per cent and a minimum response rate of 75 per
cent in all regions and nations of the UK.
9. Family and Childcare Trust
Childcare Costs Survey 2014 09
Childcare Costs
Childcare costs for
the under fives
For a child under two the average cost of 25 hours
childcare in a nursery is now £109.89 per week of
£5,710 per year in Britain. When the cost data was
weighted to take into account ownership patterns
and population, the weighted cost for an under two
in a nursery was £4.51 per hour in England. Using the
weighted hourly cost parents who buy 40 or 50 hours
childcare would now expect to pay £9,380 and £11,730
every year, respectively.
The most expensive nursery costs £494 per week for
25 hours childcare and was in London. Over the year
a full-time place (50 hours) in this nursery would cost
£25,700. The average cost for 25 hours childcare in the
most expensive local authority nursery was £228.25 per
week. There were 15 local authorities where average
costs for 25 hours childcare exceeded £150 per week.
Table One shows that London and the South East
remain the regions with the most expensive under-fives
childcare. In London nursery costs for a child under
two are 28 per cent higher than the British average. A
London parent with a child under two pays on average
£30.23 more every week for 25 hours nursery care
than the average parent in Britain. Over one year this
amounts to £1,570 extra cost; for parents in the South
East the comparable figure is £1,050 extra per year.
Childminders’ costs are generally a little lower than
nursery costs. For a child under two the average cost
of 25 hours childcare from a registered childminder is
now £99.77 in Britain (Table One). Over a year parents
who buy 40 or 50 hours childcare for a child aged two
or under would now expect to pay £8,300 and £10,370
respectively.
Again, London and the South East are the regions
where registered childminders are most expensive. In
London childminder costs for a child under two are 37
per cent higher than the Britain average. A London
parent of a child under two pays on average £36.63
more every week or £1,905 per year for 25 hours
weekly childcare from a childminder.
Childcare costs for
the over fives
In Britain about a third of parents use after-school
clubs to care for their children. The average cost of
an after-school club providing 15 hours of care is now
£48.19 per week in Britain or £1,830 per year. The East
of England and the South West are the regions with the
most expensive after-school clubs.
Some families with children aged between 5 and 11
use childminders to pick children up from school. This
is often a favoured arrangement if parents sometimes
work after six o’clock; childminders are usually more
flexible than after-school clubs and can often provide
extra hours of childcare. The average costs in Britain for
an after-school pick-up and 15 hours after-school care
from a childminder is now £65.08 per week or £2,470
per year.
Childminder care for the over-fives is most expensive
in London, where it is 44 per cent more expensive than
the British average. A London parent with two children
who are picked up from school by a childminder can
expect to pay £1,090 more a year than the average
parent in Britain.
For under-fives, childcare costs differences across
Britain are largely associated with regional differences
in staff wages, with nursery costs highest in London and
the South East. Here higher average family incomes
can offset some of the greater costs of childcare.
But for after-school childcare there is no such inter-
regional pattern in costs. There are more significant
differences in the costs of clubs within local authorities
and between different local authorities in a region/
nation than between regions and nations (Figure Two).
While there is only a 14 per cent difference in price
between the most expensive region (East of England)
and the cheapest (Yorkshire and Humberside), the costs
in the most expensive London local authority are 240
per cent higher than the cheapest in the capital. These
cost differences are caused by differing levels of local
authority and school subsidy for after-school provision,
as well as level of supply and market failure. This means
that parents in neighbouring local authorities may have
very different costs for after-school clubs and that
cannot be offset by regional differences in wages. This is
indicative of a childcare postcode lottery.
10. Family and Childcare Trust
Childcare Costs Survey 2014 10
Childcare costs
Figure Two: Cost differences for after-school clubs within regions and nations, 2014
0%
50%
100%
150%
200%
300%
250%
14%
134%
185%
264%
169%
240%
181%
71%
174%
146%
64%
180%
Inter-regionalcost
differences
Eastintra-regional
EastM
idlands
inra-regional
London
intra-regional
N
E
intra-regional
N
W
intra-regional
SE
intra-regional
SW
intra-regional
W
estM
idlands
intra-regional
Y
and
H
intra-regional
Scotland
W
ales
Source: Family and Childcare Trust Annual Childcare Costs Survey, 2014
11. Family and Childcare Trust
Childcare Costs Survey 2014 11
Changes in costs over time
During the last 12 months nursery costs for the
under twos have increased in all parts of Britain, with
an average increase of 3.3 per cent (Table Three).
This is above the rate of inflation. England has seen
the lowest price increase for nursery provision.
Childminder prices have risen in England and
Scotland, although not in Wales.
The costs of after-school clubs have fallen in all parts
of Britain. The survey showed that about a third (35 per
cent) of these clubs are run by schools and four
per cent by local authorities. The Family and Childcare
Trust’s work with clubs has led us to conclude that
many schools and local authorities are conscious of
the increased costs of living and the squeeze on family
incomes and have attempted to maintain their prices.
Table Three: Changes in childcare costs between 2013 and 2014
Region/Nation Nursery
25 hours
(under 2)
Nursery
25 hours
(2 and over)
Childminder
25 hours
(under 2)
Childminder
(2 and over)
After-school
club 15
hours
England 2.2% 0% 1.7% 4.4% -2.6%
Scotland 4.8% 8.2% 2.5% 4.2% -1.8%
Wales 11.7% 13% -1.4% 0% -5.1%
Britain average of all nations and regions 3.3% 1.5% 1.6% 4.0% -3.0%
Source: Family and Childcare Trust Annual Childcare Costs Survey, 2011
Over the last five years since 2009 however, childcare
costs in almost all regions have risen significantly at a
time when wages have been stagnant (Table Four). For
a child under two receiving 25 hours of childcare in a
nursery is now 27 per cent more expensive than it was
in 2009. For this part-time provision, parents are now
paying £23.35 per week or £1,214 more every year
in 2014 than they were in 2009. Even for after-school
clubs parents are paying £146 more per year than they
were in 2009.
Table Four: Changes in childcare costs over a five year period 2010-2014
Region/Nation Nursery
25 hours
(under 2)
Nursery
25 hours
(2 and over)
Childminder
25 hours
(under 2)
Childminder
(2 and over)
After-school
club 15
hours
East of England 24% 19% 44% 43% 9%
East Midlands 10% 16% 11% 13% -9%
London 29% 41% 31% 35% 9%
North East 44% 47% 11% 10% 43%
North West 29% 46% 23% 29% 48%
South East 23% 25% 16% 22% 0%
South West 26% 31% 17% 14% 18%
West Midlands 46% 40% 20% 20% 20%
Yorks and Humberside 12% 11% 13% 13% -7%
England 26% 30% 21% 22% 8%
Scotland 26% 31% 19% 23% 3%
Wales 32% 29% 19% 18% 18%
Britain change: average across regions
and nations 2010-2014
27% 31% 21% 22% 9%
Source: Family and Childcare Trust Annual Childcare Costs Survey, 2014
12. Family and Childcare Trust
Childcare Costs Survey 2014 12
Impact of childcare
costs on families
The survey shows that childcare is a significant outlay
for working parents. Childcare costs take a large
proportion of parents’ income and many young families
spend more on it than they do on their mortgage.
The most recent Living Costs and Food Survey from
the Office for National Statistics indicated that in the
average UK mortgage payment was £7,207 per year.
For a family with two children aged two and five, and
where parents work full-time, the average yearly
childcare bill would be £11,700. (This is based on 42
hours of nursery care every week for 52 weeks and
after-school care for the oldest child). In this family
childcare costs are 62 per higher than the average
mortgage. Where the family uses part-time (25 hours)
childcare parents would spend £7,549 on childcare.
Even for a family buying part-time nursery care for
an under two, at £109.89 per week, childcare is more
expensive than average food costs in the UK (£56.80
per week in the Living Costs and Food Survey) and
average costs on transport (£64.10 per week).
These costs also need to be seen in context of the
limited financial assistance that is offered by the
Government to help families with their childcare costs.
Parents of all three and four year olds and some two-
year-olds qualify for some free early education and
others may receive employer supported childcare
vouchers. However, not all employers issue vouchers
and not all childcare providers accept them.
Help with childcare costs is also available through the
childcare element of Working Tax Credit, although
the amount of help tapers off sharply for after if the
first earner in a couple household earns more than
£15,910 per year before tax and National Insurance
are deduced. Figure Five shows the impact of this
taper on a single parent who works 37 hours per week
and needs to purchase 42 hours of childcare costing
£190 every week or £9,880 per year. Earning the
National Minimum Wage a parent would still have to
be expected to contribute £3,510 or 28.1 per cent of
their gross income. Help with childcare costs tapers off
if the single parent earns more than £17,000 per year.
Even at this income, the parent is spending more than
a fifth (20.6 per cent) of her income on childcare. This is
because tax credit regulations set a maximum level of
help with costs of £122.50 per week for one child. The
survey shows that there is not a single local authority
in Britain where this would buy full-time childcare for
a child under two and there are 38 local authorities
where this would not even purchase 25 hours of
childcare for a child aged two or under.
The average salary for a nurse in Britain is £31,000 per
year. At this income the parent in Figure Five’s model
would only receive £994 help with her childcare costs
through Working Tax Credit and would be expected to
contribute £8,886 or 28.7 per cent of her gross income
to pay for childcare. A parent earning £36,000 would
receive no help with childcare costs and would be
expected to pay all £9,880. A single parent working
for 37 hours and needing to buy 42 hours of childcare
would have to earn more than £49,400 to be paying
less than 20 per cent of her income on childcare.
13. Family and Childcare Trust
Childcare Costs Survey 2014 13
Impact of childcare costs on families
Figure Five: Tax credit support with childcare costs by income
£40,000
£35,000
£30,000
£25,000
£20,000
£15,000
Annual Income
£10,000
£5,000
£0
35%
30%
25%
20%
15%
10%
5%
0%
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45
Childcare costs after tax credit % income spent on childcare
Percentageofgrossincomespentonchildcare
Source: HMRC Tax credit Calculator
High childcare costs often have the largest impact on
families of young children who need to purchase full-
time or nearly full-time childcare. Of course, parents
could stay at home and look after their children.
However, it can be difficult to re-enter the labour
market after protracted periods of unemployment. It
is for this reason that many parents want to work after
they have children and maintain their skills.
All children in England, Scotland and Wales qualify
for part-time free early education in the term after
their third birthday. In England they receive 570 free
hours every year. This can help with childcare costs
as the case study shows. But even this help means
that some parents are contributing a substantial part
of their income to childcare. Data from the OECD
shows that parents in Britain are forced to set aside a
very high proportion of their salary to cover childcare
costs; in 2012 only Swiss parents contributed a higher
percentage of their earnings. The average childcare
costs for all OECD counties is 11.8 per cent of parental
net income. In France this figure is 10.4 per cent, in
Germany it is 11.1 per cent while in the UK parents are
paying 26.6 per cent of their net income for childcare8
.
For some parents high childcare costs are a barrier to
work. As a consequence maternal employment levels
for those with children under five – particularly for the
least well qualified – are low, compared with OECD
countries (Ben-Galim, 2011). Women’s skills are lost
and families become a cost to the Exchequer as they
depend on benefits.
8 OECD Family Database live tables.
14. Family and Childcare Trust
Childcare Costs Survey 2014 14
Impact of childcare costs on families
Even for parents who return to work after having
children, the cost of childcare can prevent them taking
full-time work. Parents, usually mothers, become
trapped in low-paid and low status part-time work
and the high cost of childcare prevents them from
extending their hours. A 2014 survey for the Resolution
Foundation indicated that 20 per cent of all mothers
wanted to work more hours. The desire to work extra
hours was highest in low income households. Ensuring
affordable childcare would enable parents to work, to
extend their hours and to move out of poverty.
Case study
Rebecca is a manager of a department store
and has a gross salary of £24,500 per year. She
is a single parent to a four-year-old boy and as a
consequence receives 15 hours free nursery care
every week, which means that Rebecca only needs
to buy 30 hours of childcare costing her £135 per
week. Rebecca also qualifies for help with childcare
costs through Working Tax Credit, with that help
amounting to £51 per week, leaving her £84 out of
pocket. In a year she spends £4,368 on childcare or
nearly 18 per cent of her gross annual salary.
15. Family and Childcare Trust
Childcare Costs Survey 2014 15
Why is childcare so expensive?
While these costs represent a significant outlay to
parents, it is important to remember that childcare by
its very nature is labour intensive and thus will always
be expensive. It is also inaccurate to argue that these
costs are merely the result of childcare providers
charging high fees to hard-pressed parents. The reality
is more complex. Much of the cost of childcare is due to
wages, with recent Government research suggesting
that 77 per cent of group-based (nursery and club)
childcare costs were staff costs (Department for
Education, 2012b). At present regulations stipulate that
for children under two in nurseries there must be one
member of staff for three children. In nurseries, too,
the manager must have a relevant level 3 qualification
– equivalent of an A-Level. While salaries for nursery
workers are not high, the need to maintain safe
supervision levels and deliver high quality childcare
does, inevitably, mean that childcare cannot – and
should not – be provided ‘on the cheap.’
In England in 2013, the Department for Education
proposed to change staffing ratios for early years’
providers, arguing that allowing staff to care for more
children would reduce the costs to parents. A nursery
worker would be allowed to care for up to four children
under one, compared with three under existing
regulations (Department for Education, 2013). But there
was overwhelming opposition to this proposal from
parents who felt their children’s safety and wellbeing
would be compromised. The Government eventually
dropped this proposal.
But there are other reasons that childcare is costly
in Britain. Much of it is delivered by the private and
not-for-profit sector: 91 per cent of nursery care, 94
per cent of sessional and pre-school education and
67 per cent of after-school clubs are delivered by the
private and voluntary (not-for-profit) sectors in England
(Department for Education, 2012a). Most private and
voluntary sector providers are required to pay business
rates and many pay rent for their premises. Bank
loans for expansion need to be serviced. Government
research suggested that 7 per cent of the childcare
costs of group settings in England could be accounted
for by rent or mortgage payments (Department for
Education, 2012b). Private sector childcare providers
also aim to make a profit. Public sector childcare
usually does not have the additional costs of rent, rates
and servicing debts as well as profits. The reliance
on the private and not-for-profit sectors to deliver
childcare in Britain is reflected in the differential costs
of nursery provision. This year’s survey showed that
nursery provision for a child under two is 17.5 per cent
more expensive in the private and not-for profit sectors
than in the maintained sector in Britain. If a parent buys
50 hours per week childcare in a nursery every year,
the price difference between public sector provision
and the rest will add up to over £1,500.
Some schools and local authorities subsidise their
breakfast and after-school childcare, although as
already noted, levels of subsidy vary from area to area
(Figure Two). This means that some parents face more
costly provision than others.
In other cases working parents also cross-subsidise
free part-time early education in nurseries. In England,
central government, via local authorities, funds
early years’ providers to deliver part-time free early
education for all three and four year olds, providing
£3.80 per hour (adjusted by area) to local authorities to
deliver to providers. Many nurseries and sessional pre-
schools argue that this level of funding does not cover
their costs (Rutter et al, 2012). In order to break even,
early years providers then charge working parents a
higher rate for the additional hours that they purchase.
In some areas providers also operate other cross-
subsidy systems, with the parents of three and four-
year-olds cross-subsidising childcare for babies, where
higher staffing requirements can make childcare too
expensive for local markets to sustain.
There is also a link between childcare supply and its
cost. As already noted, childcare in Britain operates on
a regulated free-market principle. Increased demand
is meant to increase supply and help keep prices
competitive and therefore affordable. If prices increase,
the implication is that supply is lower than demand and
that new entrants are not setting up to meet this unmet
demand. This is a symptom of market failure in our
childcare system.
A further reason that childcare is expensive in Britain
is that funding mechanisms for subsidising childcare
are complex. Parents receive financial help directly,
through the childcare element of Working Tax Credit,
through employer-supported childcare vouchers and
through small schemes operated by Job Centre Plus
and colleges. Other subsidies go from the Government
directly to the childcare provider through the free early
education offer. All of these funding channels have
administrative costs and there is considerable potential
to simplify funding streams to reduce costs.
16. Family and Childcare Trust
Childcare Costs Survey 2014 16
Childcare supply
The Childcare Act 2006 obliges all local authorities in
England and Wales to provide sufficient childcare for
working parents and those undertaking training or
education with the intention of returning to work. In
order to meet this duty, local authorities need to know
about gaps in childcare provision, so they can intervene
in the market. The Childcare Act 2006 and its statutory
guidance thus require local authorities to assess
childcare sufficiency. In Wales, ‘childcare sufficiency
assessments’ are undertaken every three years, with
an annual update between the three year reporting
period. In England, the legal obligation to assess
childcare supply and demand is being amended, first
in statutory guidance and now in the Children and
Families Bill 2014. Local authorities are now required to
produce an annual report and action plan to explain
how they are ensuring sufficient childcare in their area:
“Report annually to elected council members on how
they are meeting their duty to secure sufficient childcare,
and make this report available and accessible to
parents”. (Department for Education, 2012c)
There is no equivalent legislation to the Childcare
Act 2006 in Scotland, although the 2008 Early Years’
Framework requires that local authorities have ‘a
strategic view of childcare accessibility’ (Scottish
Government, 2008). In the past, about half of local
authorities in Scotland did not undertake accurate
assessments of childcare supply and demand (Family
and Childcare Trust, 2013c). Over the last year the
survey shows that many more local authorities in
Scotland have assessed the sufficiency of childcare.
In future, such an assessment will be obligatory as the
Children and Young People (Scotland) Act 2014 is likely
to require local authorities to have childcare plans to
ensure sufficient provision for the under-fives.
The survey asked local authorities to use their most
recent childcare sufficiency data to estimate if they
had sufficient childcare for different groups of children.
In 40 per cent of English local authorities and 37 per
cent of Scottish local authorities, parents had voiced a
lack of childcare over the last 12 months. Despite the
obligations of the Childcare Act 2006 and the Scottish
Early Years’ Framework the survey showed that only
half (49 per cent) of local authorities had sufficient
childcare for working parents (Table Six). Although
there have been some improvements in the supply of
childcare for this group since the 2013 survey, half of
local authorities are failing their duties and not being
held to account for this.
The survey showed that an increased number of
English local authorities have enough childcare for the
under twos, with just 20 per cent of them reporting
sufficient provision in 2013, compared with 54 per cent
in 2014 (Family and Childcare Trust, 2013a). Table
Six also highlights large gaps in provision for disabled
children and children who live in rural areas, although in
both cases there have also been some improvements
in supply in England since 2013.
Table Six: Percentage of local authorities reporting sufficient childcare for particular groups of children, 2014
England Scotland Wales Britain average of
regions and nations
Children aged two or under 54% 32% 22% 49%
Three and four year olds 69% 55% 17% 63%
5-11s 35% 32% 11% 33%
12-14s 17% 23% 6% 17%
Disabled children 28% 18% 6% 25%
Children who live in rural areas 20% 14% 0% 17%
Children of parents who work full-time 54% 23% 28% 49%
Children of parents with atypical work patterns, for
example, shift workers
14% 9% 6% 13%
17. Family and Childcare Trust
Childcare Costs Survey 2014 17
Childcare supply
Another serious gap in provision is childcare for 5-11
year olds. Table Six shows that just a third of local
authorities (33 per cent) had sufficient childcare –
childminders, breakfast, and after-school clubs – for
this age group. The shortage in this type of childcare
was most severe in Wales. Moreover, this trend has
worsened over the last six years (since the first
childcare sufficiency assessments in 2008) with 39 per
cent of local authorities reporting enough provision in
2009, compared with 33 per cent today (Daycare Trust,
2009). Nor has there been any large improvement in
ensuring sufficient after-school activities for 12-14 year
olds with 14 per cent of local authorities reporting they
had enough provision for this group in 2009, compared
with 17 per cent today.
The Family and Childcare Trust’s research suggests
that there is a mismatch between supply and demand
of childcare in some areas, suggesting market failure.
Reasons for this could include the high costs of entry
into the nursery market (particularly where rents are
high and suitable premises scarce), uncertainty about
parental demand and difficult lending conditions.
The childcare market is bound by rules to determine
its quality. These requirements, rightly, set a fixed
minimum cost for providers. Most for-profit childcare
providers operate on low profit margins that are highly
sensitive to small changes in income or outgoings.
Not-for-profit providers experience similar sensitivities.
Economies of scale can help providers reduce costs,
and this can be achieved by both local authorities
and large ‘chain’ nurseries, the latter having a highest
market presence in England and Wales.
A local community might almost reach market
saturation for childcare, or there might be services that
meet mainstream needs, but investment in additional
childcare places for particular types of need –
for example, disabled children or children in sparsely-
populated rural areas is unlikely to be delivered in a
free market.
These market failures are why local authorities are
expected to intervene, and why knowledge about
childcare demand and the limits of market supply
are necessary. The greater use of school buildings
to provide childcare and activities for school-aged
children is one local authority intervention that would
increase supply for older children.
Childcare for parent with atypical work patterns is
another gap where there has been little progress to
extend provision. Atypical work patterns are varied,
but they include planned and unplanned overtime,
shift work, zero hours’ contracts, agency work, casual
and seasonal work. Many parents with atypical work
patterns share childcare with their partners – a strategy
sometimes termed shift parenting. Others rely on
informal childcare, with grandparents most likely to
provide this type of childcare (Rutter and Evans, 2012).
However, not all parents are able to turn to partners,
relatives and friends to provide childcare. If they have
no formal childcare they may be restricted in the jobs
they can take.
There are models of formal childcare for parents with
atypical work patterns. Ensuring that nurseries and
childcare for school-aged children is open between
7am and 7pm is an adjustment that can help some
parents. The Family and Childcare Trust also advocate
better use of sessional crèches for parents who have
irregular work and study patterns. Sessional crèches
provide part-time flexible childcare, often for a few
hours every week and typically run in children’s centres,
community centres or colleges. In England sessional
crèches are often oversubscribed; data from the
Childcare and Early Years Providers Surveys shows
that they the highest occupancy rate of any form of
childcare (Department for Education, 2012a).
However, many parents who have atypical work
patterns prefer their children to be cared for in a home
environment, either in their own home or at a registered
childminder’s home. Childminders, more so than
nurseries, have a greater capacity to accommodate
out-of-hours or changeable childcare needs. In some
parts of England private childcare providers and a
small number of employers have started to provide
registered ‘at home’ childcare services. Here registered
childminders or other groups of people who regularly
work with young children provide childcare in the child’s
own home. The carers are registered with Ofsted, so
low income parents are able to apply for the childcare
element of Working Tax Credit. The organisation that
runs the service – a private company or large employer
– brokers the relationship between parent and the ‘at
home’ carer.
18. Family and Childcare Trust
Childcare Costs Survey 2014 18
Childcare supply
While there are models of formal childcare for parents
with atypical work patterns, Family and Childcare
Trust surveys show that childcare market has failed to
deliver such provision for working parents. Indeed, there
has been little increase in this type of provision over
the last five years. There are a number of reasons for
this. First, providers themselves may not see extended
hours, sessional provision or ‘at home’ services as being
sufficiently profitable to justify offering these services.
A second reason that providers may not act to provide
childcare for parents with atypical work patterns is
that they may lack information about potential local
markets for these services. If local authority childcare
sufficiency reports fail to examine for the need for
childcare outside normal office hours, then providers
will not know if there is a market for this provision.
Research undertaken in 2012 showed that just 2 out
of London’s 33 childcare sufficiency reports from 2008
looked at demand for childcare outside normal office
hours (Rutter and Evans, 2012). It is telling that in 2014
the survey showed that 33 local authorities still did not
know if they had enough provision for parents with
atypical work patterns.
Third, many childcare sufficiency assessments have
lacked detailed action plans that identified how local
authorities might act to fill gaps in provision. And where
there were written action plans, local authorities did not
always act on them. Throughout, central government
has failed to hold local authorities to account for
this failure to ensure sufficient childcare provision for
working parents.
19. Family and Childcare Trust
Childcare Costs Survey 2014 19
Places for two-year-old children
who qualify for free early education
In England, Scotland and Wales a proportion of the
most disadvantaged two-year-olds qualify for free
part-time early education. In Scotland this provision
is offered to children who are identified as in need by
their local authority. The Flying Start programme in
Wales is in the process of extending free part-time
early education to the 36,000 most deprived two-year-
olds, alongside enhanced health visiting, parenting
support and other targeted help. Plans to offer free
early education for two-year-olds are most advanced
in England. The Department for Education is offering
funding for 570 hours of early education annually (this
amount to 15 hours per week over 38 weeks of the
year). By September 2013 the poorest 20 per cent of
two-year-olds should have been receiving free early
education. In September 2014 this will be extended to
the 40 per cent most deprived children.
The Department of Education offers £5.09 per hour
to local authorities to deliver free early education
(this figure is adjusted using a formula, giving local
authorities in London and the South East more money
to compensate for their increased running costs). Local
authorities then distribute the money to providers.
Statutory guidance obliges local authorities to find
places for eligible children and they are being placed
in a variety of settings: private and voluntary sector
nurseries, children’s centre nurseries, sessional pre-
schools and with registered childminders.
To help providers, the Government made an additional
£100 million capital funding available in 2012 and
a further £8 million to London local authorities in
December 2013. It has also funded a small team of
advisers to work with local authorities to help them find
places. In order to assist with planning, the Department
of Education has also calculated the number of eligible
children in each local authority (Table Seven). The
first estimates of numbers were made in 2012 and
were based on Office for National Statistics population
estimates and data from HM Revenue and Customs
(HMRC) and the Department for Work and Pensions
(DWP). The 2012 estimate suggested that there would
be 150,300 eligible children by September 2013. In
2013 a second estimate of 129,624 eligible childcare
was made, this time just based on the HMRC and DWP
data (Department for Education, 2013). While the
first estimate may be too high, the second estimate
excludes children in need who are also eligible, and also
does not tally with population estimates for two-year-
olds.
Free early education for two-year-olds is an ambitious
programme that has the potential to make a real
difference to the lives of England’s most deprived
children, supporting their development and enabling
parents to move back into work or undertake training.
But from the start, some local authorities have
struggled to find enough places for children who qualify
(Rutter et al, 2012). In this year’s survey the Family and
Children Trust has mapped the extent to which local
authorities have met their 2013 target. They were
asked if they had enough places for two-year-olds and
how many qualifying children had been placed on 1
November 2013.
Less than half (41 per cent) of local authorities had
enough places for two-year-olds in all areas. Table
Seven gives data on the proportion of children from
the September 2013 target who had been placed and
were receiving early education on 1 November 2013.
The survey shows that an average of 74 per cent of
eligible two-year-olds were receiving early education,
but there was a wide variation in the proportions
of children in provision between local authorities. In
England there were 37 local authorities where less than
60 per cent of eligible two-year-olds were receiving
free early education, of which 25 were in London. The
survey suggests that 30,000 – 32,000 of England’s
poorest two-year-olds are missing out on free nursery
education.
20. Family and Childcare Trust
Childcare Costs Survey 2014 20
Places for two-year-old children who
qualify for free early education
Table Seven: Proportions of the September target number of two-year-olds who were placed with early years providers
in November 2013
2012 DfE estimates
on numbers of
2 years who
will qualify for
free place by
September 2013
2013 DfE estimate on
numbers of 2 years
who will qualify for free
place by September
2013, excluding children
in need
Average
percentage of
target met by
local authority
November 2013
Highest
percentage
target met
in region,
November 2013
Lowest
percentage
target met
in region,
November 2013
East of England 13,700 11,935 78% 110% 48%
East Midlands 12,000 9,978 77% 119% 55%
London 28,800 26,716 51% 121% 33%
North East 8,900 7,265 79% 97% 53%
North West 21,800 18,773 77% 119% 47%
South East 18,200 16,521 74% 94% 40%
South West 11,700 9,869 91% 111% 52%
West Midlands 18,700 15,180 73% 113% 41%
Yorks and
Humberside
16,500 13,667 91% 129% 53%
England Total 150,300 129,624 74% 121% 33%
Sources: Department for Education, 2012; 2013; Family and Childcare Trust Annual Childcare Costs Survey, 2014
There are a number of reasons why local authorities
are struggling to place children. Some parents
have decided not to take up the offer. But in many
areas providers have decided not to take part in the
programme. They have complained that that the
hourly funding rate is not financially sustainable. As
already noted, many nurseries operate complex cross-
subsidy mechanisms; they rely on working parents
of three and four year old children to purchase extra
hours on top of their existing 15 hours of free provision.
However, few parents of two-year-olds who qualify for
free provision will be working, so they will not purchase
extra hours. This means there is no cross-subsidy to
cover costs. Additionally, the two-year-old offer is
generally delivered over 38 weeks of the year, while
nurseries and childminders tend to work over 48 - 50
weeks, leaving 10 – 12 weeks as unfunded ‘dead-time’
that providers cannot fill with another child. A child
receiving a 15 hours early education every week can
block a full-time place if providers cannot find another
child who to take the remaining hours (Rutter et al,
2012).
Some providers feel that children who qualify for free
provision have too many additional needs and have
declined to take them (ibid).
They may have to attend meetings with social workers
or provide special equipment for a disabled child. It is
important to note that the funding that early years’
providers receive is only adjusted for area costs, and
not for children’s needs. In this respect, early years’
funding differs from schools’ funding, as schools
receive extra money in the form of the pupil premium.
This grants extra funder to children in receipt of free
school meals (£1,300 per pupil of primary-school age
and £935 for a secondary aged pupil). Looked-after
children attract a higher premium. Outside the pupil
premium grant, service children receive extra funding
as do children who have high cost special educational
needs. There is a compelling argument to introduce a
pupil premium for the early years. This would enable
providers to better meet the needs of the most
disadvantaged children and address concerns about
provider under-funding for children with specific needs.
21. Family and Childcare Trust
Childcare Costs Survey 2014 21
Places for two-year-old children who
qualify for free early education
In many urban areas, particularly London, there is not
sufficient space to expand existing provision (Rutter
et al, 2012). There is also a spatial mismatch between
supply and demand. There has always been less
nursery provision in deprived areas, as there is less
demand here, so local authorities have to find places
for two-year-olds in areas where there is already less
provision. This problem has worsened with over 100
nurseries based in Sure Start centres – disproportionally
located in poor areas - closing over the last two years
(House of Commons Education Select Committee,
2013).
By September 2014 local authorities will be expected
to find an estimated 277,000 places for two-year-
olds (excluding children in need and children with
special educational needs and disabilities). On present
evidence it is likely that many local authorities will miss
this target and many of England’s poorest children will
not benefit from early education. The Government
could respond by offering additional revenue and
capital funding to providers including a pupil premium.
An alternative approach would be to extend free early
education for two-year-olds to universal provision. This
would cost an additional £400-£450 million a year to
deliver, although there would be efficiency savings
to local authorities in reduced administration costs.
Universal provision would result in a market driven
expansion of supply: providers could operate the cross-
subsidy systems that they use for three and four year
olds, where working parents purchase extra hours on
top of their free allocation. Such an expansion would
also benefit parents, enabling them to return to work
and preventing long periods of time spent out of the
labour market.
22. Family and Childcare Trust
Childcare Costs Survey 2014 22
Fixing the system
Our research shows that the current childcare system
is not working for anyone. Children lose out on vital
early education and families remain trapped in poverty
because they cannot make work pay. Childcare
providers struggle with debts. Women fail to return to
the labour market after they have children and the
economy loses their skills and their taxes. The state
faces greater welfare bills and high administrative costs
for delivering a complex support system.
The priority must be to address the increasing costs for
parents, make work pay and ensure that all children
benefit from high quality early education. In the short-
term, the steps that will most effectively meet these
aims and support families are to:
►► Extend free early education to all two year olds.
►► Extend the pupil premium to our most
disadvantaged two, three and four year olds.
►► Make better use of school premises and children’s
centres to provide high quality and flexible childcare
provision.
►► Uprate Working Tax Credits to account for childcare
cost increases since 2005.
►► In future, increase support with childcare costs
in Universal Credit to a minimum of 85 per cent for
all parents.
►► Effectively enforce the duty on local authorities to
provide sufficient childcare.
These measures will make a difference to some
parents and to providers. But they are not a long-term
and sustainable solution to the problems of high costs,
low quality and the complexity in the childcare system.
Childcare will remain unaffordable for many families.
Ten years on from the 2004 childcare strategy,
bold reform is needed to address the UK’s childcare
challenges. We need a childcare system that gives
children the best start in life and that enables parents to
remain in work.
The run up to a general election is a key opportunity for
political parties to look at reform of childcare provision.
Over the next year we will be setting out our vision
for childcare – and we want to see all political parties
commit to a long term childcare strategy that delivers
for providers, for parents and, crucially, for children.
23. Family and Childcare Trust
Childcare Costs Survey 2014 23
Bibliography
Ben-Galim, D. (2011) Making the Case for Universal
Childcare, London: Institute for Public Policy Research
Daycare Trust (2009) Annual Childcare Costs Survey
2009, London: Daycare Trust
ibid (2010) Annual Childcare Costs Survey 2010,
London: Daycare Trust
Department for Education and Employment (DfEE) and
Department for Social Security (DSS) (1998) Meeting
the Childcare Challenge; A strategy and consultation,
London: DfEE and DSS
Department for Education and Skills (DfES) (2005)
Extended Schools: Access to opportunities and
services for all, a prospectus, London: DfES
Department for Education (DfE) (2012a) Childcare and
Early Years Providers Survey 2011, London: DfE
ibid (2012b) Childcare Providers Costs Survey 2011,
London: DfE
ibid (2012c) Statutory Guidance for Local
Authorities on the Delivery of Free Early Education
for Three and Four Year Olds and Securing
Sufficient Childcare, London: DfE
ibid (2013) More Great Childcare: raising quality
and giving parents more choice, London: Dfe
ibid (2014) Childcare and Early Years Survey of
Parents, 2012-13, London: DfE
Family and Childcare Trust (2013a) Annual Childcare
Costs Survey 2013, London: Family and Childcare Trust
Family and Childcare Trust (2013b) Holiday Childcare
Costs Survey 2013, London: Family and Childcare Trust
ibid (2013c) Scottish Childcare Report, London:
Family and Childcare Trust
HM Treasury (2004) Choice for parents: the best start
for children: a ten year strategy for childcare, London:
the Stationery Office
HM Treasury (2013) Tax-Free Childcare: consultation
on design and implementation, London: HM Treasury
House of Commons Education Select Committee
(2013) Foundation Years: Sure Start Children’s Centres,
London: The Stationery Office
Resolution Foundation (2014) Careers and Carers:
Childcare and maternal labour supply, London:
Resolution Foundation
Rutter, J. and Evans, B. (2011) Informal Childcare:
Choice or Chance. A Literature Review, London:
Daycare Trust
Rutter, J. and Evans, B. (2012) London Childcare Report
2012, London: Daycare Trust
Rutter, J., Singler, R. and Evans, B. (2012) Supporting
London local government to deliver free early
education for disadvantaged two year-olds, London:
London Councils