Working parents are struggling as childcare costs rise four times faster than wages

Since 2008, childcare costs have risen four times as fast as wages, leaving millions of families with eye-watering bills.

Two parents working full-time with a one-year-old in nursery spent 11% of their wages on childcare in 2016. Where one parent works full-time and another part-time, it rises to 14%.

And for single parents with one-year-olds in nursery, the picture is even worse. Last year, they spent more than a fifth (21%) of their wages on childcare.

And given that wages are stagnant and inflation is rising, things aren’t about to get any better.

Rebecca, a 26-year-old mum-of-two in Wiltshire, feels like she’s “paying for the privilege of going to work”.  

“I probably would be better off on benefits,” she told us, “but I want to set an example to my children.” Rebecca currently works 16 hours a week in retail but a huge proportion of her wages go on nursery bills for her three-year-old son.

During the summer, she depends on a network of friends and neighbours who help take care of her two boys, since Rebecca can’t afford to take the time off or to pay for childcare.

Alex, a 31-year old dad from Cardiff, tells a similar story. When their son was born, he and his wife both considered working full-time, but realised that he’d have to work a 50-hour week to cover the additional childcare costs.

He says it was a “no brainer” for her to go back to work full-time, while he works part-time. Even then, they’d struggle to cover their costs if it weren’t for family members helping with childcare.

The policy solutions in this area are clear. Parents need universal free childcare from as soon as maternity leave finishes, closing the gap in childcare support for one-year-olds. This is especially important for mums, too many of whom are still forced to choose between having a family and a career.

But we also want to see change at work. Earlier in the year, TUC research found that 42% of parents think they’re penalised at work when they look for greater flexibility. Insecurity is on the rise for this group as well: one in four told us they’d had their shifts changed at short notice and one in five are given their rota less than a week in advance.

So we want employers to take a more understanding approach to working parents, stop using insecure and zero-hours contracts, and create more great jobs for working mums and dads.

These measures are good for working families, and for all of us. Because when working people and their families are supported, the benefits are felt throughout our economy and our society.

Right now, work doesn’t pay for many parents like Rebecca and Alex. It’s time for that to change.