The rising cost of childcare has made having a career unaffordable for a third of UK parents says new study.
Almost one in four parents in the UK can no longer afford their current childcare arrangements, according to a new study by smart money platform Credit Karma.
In the wake of the Spring Budget, which promised 30 hours per week of free childcare for under-fives by 2025, The Great British Credit Report has revealed many parents are being priced out of the workforce. According to the study, nearly one in three (32%) mums and dads say the rising cost of childcare has made it unaffordable for them to continue with their career.
Akansha Nath, Head of Partnerships at Credit Karma UK said, “The rising cost of childcare is a problem facing many parents right now. As the cost of living continues to rise, it’s more important than ever for parents to budget their money and stay on top of their bill repayments as falling behind can lead to higher debt and more interest paid.
“There is also a wide range of options for those struggling to afford their current childcare arrangements, including leveraging the government’s tax-free childcare scheme, council community nurseries, and nanny share programmes.”
The issue affects men and women almost equally but disproportionately affects single parents, where the number of those impacted rises to 41%.
Nearly one in three (30%) have already had to make adjustments to childcare provisions due to the impact of the cost-of-living crisis.
Increasingly, parents in the UK are turning to credit and loan products to cover rising costs. Childcare is the expense most likely to be covered fully or partially by credit (15%) when compared to charges for holidays (11%), dentistry expenses (9%), or pet care (8%).
The childcare crisis disproportionately affects Londoners, where cost of living concerns are at a record high. The number of those forced to abandon their careers rises sharply there too, with almost half of working parents (48%) deeming their current working pattern unaffordable due to childcare costs.