Daycare Trust: Holiday childcare costs still rising

This year's survey shows considerable cost increases in almost all parts of Britain, and in particular England where costs have risen 10.1%.

In the first costs survey conducted since Childcare Sufficiency Assessments were conducted in England and Wales, more than half of English local authorities report that parents feel there is not enough holiday childcare, and all regions reported a particular lack of holiday childcare places for children 12 years old and over, and for disabled children.

The typical weekly cost of holiday childcare has risen to £87.43 per week in Britain. The overall average holiday childcare cost for England stands at £91.56 per week, a rise of 10.1% since last year. This was almost double the rate of increase in Wales, and slightly higher than the rise in Scotland.

The 10.1% increase in England is the biggest year-on-year jump in holiday childcare costs since 2003 when the typical cost rose by 15.8%. The largest rises were seen in the West Midlands and the North East, although despite considerable increases since last year, these two regions still have the cheapest average holiday childcare costs in the country in 2008.

Nearly three-quarters of FISs (Family Information Services) in England that responded to the survey said parents had reported a lack of holiday childcare places. However only about half (51%) of FISs themselves stated that they felt that there was insufficient holiday childcare in their area. FISs reported particular gaps in holiday childcare for disabled children and children aged 12 years and over, with 54% and 64% reporting a lack of sufficient childcare for those groups respectively.

Daycare Trust Joint Chief Executive Emma Knights said:

"High quality holiday childcare is essential for working families up and down the country. Parents should not be put in a position where they have to choose between earning money to support their family and stopping work to care for their children. High quality holiday childcare also provides a stimulating environment for kids throughout the long summer months with children being able to try things they wouldn't otherwise experience.

"That's why it is deeply worrying that parents are reporting a lack of holiday childcare provision and that average prices are rising well above inflation pushing the costs beyond the reach of poorer families. It is important that parents claim any help to which they are entitled"

"The lack of childcare places for children of 12 and over is especially worrying for lone parents, as from autumn this year lone parents with children over the age of 11 will be required to make themselves available for work or risk losing benefits. It is clear that urgent action needs to be taken to ensure that lone parents have access to appropriate holiday childcare for their children if they are expected to find work."

Daycare Trust Recommendations:

Subsidise out of school activities for all 11-14s and for younger children from poorer families, aiming ultimately to make them free.

It is urgent that the provision of holiday childcare is increased, given the growing number of working parents and especially given their increased importance within the government's welfare reform programme. This will require sustained subsidy to ensure all parents are able to access such care.

Increase the proportion of help with childcare costs through tax credits from the current 80 per cent to 100 per cent; vary maximum levels that can be claimed by region to accommodate costs in high cost areas; and consider more fundamental reform.

Tackle the affordability crisis by giving local authorities the means to develop sustainable services in poorer areas and provide free places for those missing out, including places for disabled children, parents needing out of hours care, Further Education students and parents of under-threes who want to train.

Ends.

CONTACT: DAYCARE TRUST, 020 7840 3350.


NOTES TO EDITORS

The final PDF version of the report is available by request prior to publication, and will be published on our website: www.daycaretrust.org.uk on Wednesday 16th July.


Download the PDF version of the report Holiday childcare costs survey 2008.

1. Figures compiled from a survey of 200 Family Information Services of which 144 responded.

2. The increasing cost of holiday childcare
The 10.1% increase in England is the biggest year-on-year jump in holiday childcare costs since 2003 when the typical cost rose by 15.8%. Figures for Scotland and Wales have been collected for less time, but this is the first time that the average cost of holiday care in Wales has dropped below the average cost in England. Scottish costs continue to rise as they have done every year since 2005 (when Daycare Trust's Holiday Costs survey of Wales and Scotland began).

3. Overall holiday childcare provision and sufficiency
FISs reported a mixed picture of whether the number of holiday childcare places were increasing, decreasing or staying the same. In both England and Wales opinion was split broadly evenly between each of these positions. In Scotland FISs predominantly felt that the number of places had stayed the same or increased.

Local authorities in England and Wales were recently required to conduct Childcare Sufficiency Assessments to ascertain whether their area has sufficient childcare places to meet parental demand.

Nearly three-quarters of FISs in England that responded to the survey said that parents had reported a lack of holiday childcare places. However only about half (51%) of FISs themselves stated that they felt that there was insufficient holiday childcare in their area. FISs reported particular gaps in holiday childcare for disabled children and children aged 12 years and over, with 54% and 64% reporting a lack of sufficient childcare for those groups respectively.

As there are fewer local authorities in Scotland and Wales the figures are less conclusive, though it seems that all nations had fewer holiday childcare places for disabled children and children aged 12 and over. However, over half of Scottish FISs (12 out of 21) reported that they felt holiday childcare was sufficient, whereas not a single FIS of the 15 that responded from Wales felt that there was sufficient holiday childcare.

4. Help with childcare costs
The costs survey reports the shockingly high costs of holiday childcare in Britain, although it should be remembered that there is a difference between the fees charged and the actual amount that parents pay. The government provides several types of funding to reduce the amount that parents have to pay. Some families can claim help with childcare costs through the tax credits system, although only a small proportion actually do so (only one in ten families receiving Working Tax Credit also receive the childcare element)[3] - partly due to the complicated eligibility criteria. An employer-supported childcare voucher system, worth up to £1,195 a year, is also available to assist with childcare costs, and is taken up by 19% of parents with children under 14 in receipt of help with childcare costs.[4] In London there is also the Childcare Affordability Programme which subsidises the costs of full daycare all year round by up to £30 a week for parents on a low-income.

5. Daycare Trust would like to thank and acknowledge the help and support given by Family Information Services in the compilation of the cost survey and to Imagine Co-operative Childcare for funding this publication.

Imagine Co-operative Childcare are the first social enterprise provider of Childcare Vouchers to the private and public sector, Government and Charities. We offer simple, effective schemes to help working parents with the costs of childcare (including holiday playschemes), with supportive account management at every step.

6. Daycare Trust is the national childcare charity, campaigning for quality affordable accessible childcare for all and raising the voices of children, parents and carers. We advise parents and carers, providers, employers, trade unions and policymakers on childcare issues. We recognise that everyone is unique and we value difference in our communities. We listen to all views and are committed to act without prejudice. We oppose all discrimination and promote equality in all we do.

Daycare Trust is calling on the government to:

Meet parents' aspirations for universal childcare services by:
-expanding free places for two, three and four-year olds to at least 20 hours a week, for 48 weeks in the year and subsidising out of school activities for all 11-14s and for younger children from poorer families, aiming ultimately to make them free.
-Tackle the affordability crisis by giving local authorities the means to develop sustainable services in poorer areas and provide free places for those missing out, including places for disabled children, parents needing out of hours care, Further Education students and parents of under-threes who want to train.
-Raise the bar on childcare quality by expanding the Graduate Leader Fund, developing a new generation of childcare professionals and paying them properly.

Daycare Trust runs an information line (020 7840 3350) on Monday, Wednesday and Friday from 10am-5pm. Parents can also visit www.daycaretrust.org.uk for information.

Daycare Trust is a member of the Campaign to End Child Poverty, www.ecpc.org.uk.

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[1] Daycare Trust obtains the overall regional cost by calculating the mean average of the ten individual regional totals.

[2] The GB Average is the mean average of the three national totals.

[3] Kazimirski A., Smith R., Butt S., Ireland E., Lloyd E. (2008) Childcare and Early Years Survey 2007: Parents' Use, Views and Experiences. Research Report DCSF - RR025: DCSF

[4] Ibid