Nationwide gives £610 a month update to customers as hundreds of parents grapple with childcare costs
by Sonia Sharma, Kate Lally · ChronicleLiveChildcare costs are setting families back around £610 a month, Nationwide has warned.
Latest research from the building society reveals that families are "rethinking future children and work" as childcare costs have jumped up by around 18% over the past year. Nationwide reports that the average household now spends some £610 a month on childcare, leading many parents to contemplate quitting their jobs.
A huge 60% of the 2,000 parents surveyed admitted that the cost of childcare had deterred them from having more children, reports the Express. Despite these ongoing financial strains, the building society found that over half (53%) of families are still managing to set aside some money each month for their children's futures.
On average, these parents are putting £98 a month aside, with university fees, a house deposit, and a lump sum for a child's 18th birthday being the primary reasons for doing so. Mark Nalder, Nationwide's payments strategy director, said: "This increase in childcare costs is something we naturally see at the end of the school holidays as schools restart.
"However, it is not showing any signs of slowing, with a significant uplift recorded in October. This is forcing many families to juggle childcare costs with other higher essential bills.
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"And as our research shows, many people are reconsidering having more children or giving up work altogether. However, despite these challenges, what is encouraging is that over half of respondents are still able to put some money aside for their children to use later in life."
Earlier this week, it was announced that a £75m expansion grant will be distributed to nurseries and childminders in England to help increase places ahead of the full rollout of funded childcare. The early years pupil premium (EYPP) will also be increased by around 45% - to up to £570 per eligible child per year - to help disadvantaged children in areas who need it most, the Department for Education said.
The expansion of funded childcare for working parents began being rolled out in England in April. Working parents of children older than nine months are now able to access 15 hours of funded childcare, before the full rollout of 30 hours a week to all eligible families in September 2025.
More details are available here about eligibility for free childcare if you're working. The Government website explains that you may be able to get free childcare for your child aged nine months to four-years-old if you live in England.
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