Charity reveals soaring childcare costs

Childcare bills have soared to record levels, leaving working parents struggling to pay their childcare costs, says a new survey by childcare charity the Daycare Trust.

The trust found that a typical nursery place for a child under two is now £128 a week, or more than £6,650 a year - up 6.7% in the last year. This compares to the average weekly household income of £550 and average weekly spending on food and housing together of £77.60.

In some parts of the country, particularly London and the south east, costs are much higher - around £168 a week in inner London, or over £8,730 a year.

A typical full-time place with a childminder for a child under two is £118 a week, with after school clubs coming in at a typical £34 for 15 hours a week.

The Daycare Trust wants the government to improve the new childcare tax credit (CTC - see Labour Research November 2002) by:

* increasing the percentage of childcare costs covered by the credit;

* increasing the level of childcare costs covered to reflect the real costs;

* acknowledging that parents with two or more children in childcare face double or more costs;

* increasing the income levels under which families are eligible for help from the CTC; and

* raising take-up of the through promotional campaigns.