The Financial Strain of Parenting: More Britons Taking on Debt to Cover Childcare Costs

A recent survey commissioned by the campaign group Pregnant Then Screwed has illuminated the financial hardship that many parents face due to the burden of childcare. The study indicated that almost half of parents with children under the age of five have encountered financial challenges as a result of the escalating cost of childcare.

Joeli Brearley, the founder of Pregnant Then Screwed, expressed profound concern over the findings, emphasising that the current situation is contributing to a “cost-of-working crisis” that is particularly affecting mothers. She highlighted that the exorbitant cost of childcare is creating significant barriers for parents considering having more children and is resulting in “financial suicide” for those who make the choice to do so. Brearley cautioned that unless decisive action is taken, parenthood may become a luxury that many cannot afford, ultimately taking a toll on the economy.

According to the government’s Money Helper website, the average annual cost of sending a child under the age of two to nursery full time is a staggering £14,030. This has resulted in 46% of parents reporting that they have had to resort to taking on debt or using their savings to meet the financial demands of raising their children. Furthermore, a substantial majority of mothers, around 70%, believe that after paying for childcare, it no longer makes financial sense for them to continue working, a sentiment shared by half of the fathers surveyed as well.

In response to the challenges faced by parents, the government has announced plans to expand childcare support. Starting from April, eligible working parents of two-year-olds will be able to receive free 15 hours of childcare, with plans to extend this benefit to parents of children aged nine months to three years from September. By September 2025, the government aims to provide 30 hours of childcare per week for all eligible working parents with children aged nine months and older.

However, despite these initiatives, the survey results indicate that 90% of parents do not believe that the government’s promises will lead to a reduction in childcare costs. The study also revealed that many parents have had to resort to using credit cards, loans, borrowing from family and friends, or even withdrawing money from their savings or pension to cover the costs of childcare.

The survey, which included 5,870 respondents selected from a pool of 35,800 survey participants, paints a troubling picture of the financial strain faced by parents in the UK. The findings highlight the urgent need for sustainable solutions to alleviate the burden of childcare costs and support working parents.

It is evident that the high cost of childcare is not only impacting individual families but also has broader implications for the economy. Addressing this issue is crucial in ensuring a more sustainable and equitable future for parents and children in the UK.