20.09.2024

Majority of parents struggling with childcare costs in the past 12 months

More than four in five (85%) mothers with children aged under five say they have found it harder to afford the cost of childcare over the past 12 months, according to new research from Indeed Flex, an online platform for flexible and temporary work.

The survey of 2,000 UK women with children aged between nine months and five years found that more than three quarters (77%) have seen their childcare costs rise in the last year.

The government expanded its childcare provisions in September 2024, offering 15 hours of free childcare per week for eligible working parents with children between nine months and three years old.

However, the vast majority (85%) of mothers believe the number of free hours is still not enough and that childcare is too expensive.

More than a quarter (28%) would like the number of free hours to be increased, while over one in five (21%) said the scheme is being phased into gradually.

Although these measures are aimed at helping more women re-enter the workforce, more than two-fifths (41%) of mothers say the cost of childcare is impacting their ability to work.

Less than half (47%%) are in full-time employment, while more than two-thirds (36%) work part-time or temporary jobs and one in 10 (9%) are not in any form of paid work.

In response to rising childcare costs, compounded by broader cost-of-living pressures, more than two fifths (44%) of parents have cut back on spending.

Furthermore, more than a quarter (27%) of mothers have taken on additional work to manage the financial burden, while one in five (20%) have been forced to dip into their savings and 9% have asked for financial support from family and friends.

Sarah Peck, UK Country Manager of Indeed Flex, said: “The latest rollout of free childcare support is a positive step towards helping more women rejoin the workforce, but it’s clear that more still needs to be done.

“As childcare costs continue to rise, affordability is becoming a major issue for parents and it’s forcing them into making some difficult decisions.

“Women are having to weigh-up working and dedicating an ever-increasing share of their income towards childcare, or putting their careers on hold and staying at home to care for their little ones.

“Government-funded childcare is helping to ease the burden and give parents a little more support, but it does not solve all their issues.

“For mothers who have to juggle looking after their kids with working, just to make ends meet, temporary work can be a lifeline.

“Our research shows that 26% of women who pick up temporary work shifts do so to fit around their childcare needs. Encouragingly, more employers realise the benefits of supporting working parents and finding flexible solutions that encourage their return to work.

“Ultimately, this approach allows businesses to access a larger talent pool of skilled workers to complement their existing workforce, while giving parents the autonomy to manage their demanding schedules.”

Look out for the feature in November's edition of FMJ which discusses the results of our roundtable with Indeed Flex on 'Fill the gap: flexible working to solve the front-line worker shortage'.