Average childcare costs top £6,000

Childcare costs have reached record heights, rising by almost 10% in the last year, according to the latest survey by childcare charity Daycare Trust.

The average cost of a nursery place for a child under two is £120 a week, or more than £6,200 a year. This rises to £149 in inner London.

The typical cost for a childminder for a child under two is £113 nationally, and £144 in inner London. In contrast, parents in the north west pay £86 per week.

The shortage of childcare places means that demand is exceeding supply and pushing up prices.

Many parents are missing out on access to childcare because of the high costs. While working families on low incomes can get help towards childcare bills through the childcare tax credit, this still does not cover the costs. The current average award through the childcare tax credit is £37.50 a week, less than a third of the typical cost of a nursery place.

Parents pay three-quarters of the cost of childcare in the UK. The government pays the rest, with only a small contribution by employers.

Stephen Burke, director of Daycare Trust, said: "British parents face the highest childcare bills in Europe. Our latest survey shows why more and more families simply can't afford to pay for quality childcare. Despite the investment made since the National Childcare Strategy was launched in 1998, parents still face a daily struggle to find - let alone pay for - quality childcare".