Government rejects request from thousands to examine childcare costs

The UK’s childcare system is the second most expensive in the world

UK childcare costs are the second most expensive in the world (Getty Images/iStockphoto)

The government has rejected a petition supported by tens of thousands of women to review the cost of childcare in the UK.

The petition, which gathered 113,713 signatures, called on the government to launch an independent review of childcare funding and affordability,

The issue was debated by Parliament in September, as it garnered more than 100,000 signatures, and the Petitions Committee made recommendations for the government to review and strengthen support for new and expectant parents in light of the Covid-19 pandemic.

But those who signed the petition received a response on Tuesday 8 March, the same day as International Women’s Day, that confirmed the government “will not be launching an independent review of childcare at this time”.

The response added that the government had “collectively concluded that a formal review is not needed” and outlined existing support for parents and young children.

It came after a survey of more than 20,000 working parents, carried out last year by more than a dozen organisations, found that 96 per cent believed ministers were not doing enough to support parents with the cost of childcare.

The vast majority (97 per cent) said childcare in the UK was too expensive, with a third of parents revealing they paid more for childcare than their rent or mortgage.

The survey, shared with the Guardian, found that the proportion of parents who paid more for childcare than their rent or mortgage rose to 38 per cent for those in full-time work or were single parents.

It rose further to 47 per cent for those from a black ethnic background.

Data from the OECD shows that the UK has the second most expensive childcare system in the world, with a full time place costing, on average, £14,000 per year.

Neil Laitch, CEO of the Early Years Alliance, said the government’s response was “disappointing, although sadly not surprising”.

“Years of government underfunding have left nurseries, pre-schools and childminding settings struggling to remain financially sustainable, with many forced to increase fees and additional charges to stay afloat,” he said.

“None of this is news to government: its own policy documents – only published after a two-year Freedom of Information battle with the Alliance – reveal that funding levels are a fraction of what the government knows they need to be to cover provider costs.”

Laitch said that research from the Institute of Fiscal Studies highlighted that, although early years funding rates are set to increase in April, early entitlement funding will only see a “real-terms increase of 3p an hour next year”.

“In simple terms, this will mean higher childcare prices for parents already struggling with a cost-of-living crisis, and more and more settings being forced to close their doors for good,” he added.

“And while the government continues to argue that the number of early years places available across the country has remained broadly stable over recent years, the fact remains that there are huge regional disparities, with some areas seeing as much as a 25 per cent fall in places over the past six years.

“If the government is truly committed to supporting children and families to access quality, affordable care and early education, it will invest what’s needed to ensure that our vital sector is able to deliver it. Anything less is simply a recipe for disaster.”

The government said in its response: “The Department is continuing to explore what more can be done to help parents access childcare which will suit them, that is out of hours or before or after school; however, we will not be launching an independent review of childcare at this time.

“Parents also have a range of parental leave and pay rights, and, like all employees, can ask their employer for a flexible working arrangement. Alongside the steps we are taking on childcare provision, these employment rights may help new parents balance work and childcare.”