Our experience working with clients is now reflected in evidence from this report, highlighting the unsettling fact that we are now living in an economic environment where the cost of childcare is influencing parents’ decision on whether or not they choose to have more children. This cost – roughly £6,500 per year for the average UK household – is not only affecting couples’ family planning, but appears to have wide-ranging effects on their work practices and family life.
Perhaps unsurprisingly, this report highlights how parents are cutting back on the amount of days they work to lower their childcare costs (markedly higher for women than men) but also just how heavily parents are relying on wider family members to help with childcare. This seems to be particularly impacting grandparents, just at a time they may be expecting to be financially free of work, but is also particularly worrying for parents who don’t have access to family help.
Even though many parents believe the cost of childcare to be punishing, many of them are underestimating the cost of raising a young child by 34%.
This is particularly important as the majority (seven in ten) also hope that their children will attend university and one in eight couples plans to send them to private school, which both extend the cost even further. For parents of young children, looking ahead at a lifetime of costs can seem exceptionally daunting. Whilst life as a parent can be very hectic, a little early planning, regular saving and making use of financial incentives can all make a significant difference in the long run.
As we show in this report, parents could make over £8,000 worth of savings a year on childcare by using Government help. Also, our Killik & Co Private Education Index (2015) showed that for those thinking of private school, keeping a child in a state school until the age of eight would cut £97,000 – more than a third – off the total cost of a private education.
Start small, start early and seek advice – this is a mantra all parents should keep in mind.
Head of Wealth Planning,
Killik & Co.
The Tax-Free Childcare Scheme
The 30 hours free childcare
Savings from the Government’s childcare schemes
Current savings habits
Private education and university ambitions
Importance of family
Real cost of raising a child
Rise of flexible working
Appendices: Detailed Regional Breakdown
East of England
Yorkshire and the Humber
View the PDF of the full report
To find out more about the Real Cost of Childcare report please contact us at email@example.com or on 020 7337 0777.
Whilst every effort has been made to ensure the accuracy of the material in this
document, neither OnePoll Ltd nor the report’s authors will be liable for any loss
or damages incurred through the use of the report.
Authorship and Acknowledgements
This report is based on research produced by OnePoll, a marketing research company
specialising in online quantitative research and polling. The views expressed herein
are those of the authors only and are based upon independent research.
The report does not necessarily reflect the views of Killik & Co.
London, November 2017