Debt management: Childcare costs add to mounting costs

10/02/2010

With Credit Action reporting that the average household debt in the UK stands at £57,939, many young families could find that rising childcare costs are just too much to bear.

Daycare Trust, the charity, has reported that, despite the recession, childcare costs rose last year by up to 9.2 per cent in some areas.

This means that parents in England are paying an average of £4,576 a year for 25 hours of nursery-based care.

The news comes as almost 2,000 people a day face redundancy, which could lead to a big gap in family finances.

Despite this, demand for childcare remained high, though the report suggested this was because parents were forced to "stay in work for financial necessity".

The group continued: "There is some anecdotal evidence of mothers returning to work earlier than planned after having a baby or looking for work to supplement income and therefore an increased demand for childcare."

Childcare costs the average parent £176 a week for a son or daughter under two, according to the charity.

Posted by Fiona Smith

Tags; Budgeting Advice,

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