Looking for help with childcare costs?

Read our Real Cost of Childcare report 2017

Svenja Keller
Partner, Wealth Planning

Foreword

 

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.

Svenja Keller,

Head of Wealth Planning,

Killik & Co.

 

Executive summary

To download the full PDF version please click here.

Introduction

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

Gender breakdown

Regional breakdown

Conclusion

Appendices: Detailed Regional Breakdown

London

East of England

East Midlands

North East

North West

South East

South West

Wales

Northern Ireland

Scotland

West Midlands

Yorkshire and the Humber

View the PDF of the full report

View the PDF of the full report. A full regional breakdown is available from page 30.

To find out more about the Real Cost of Childcare report please contact us at info@killik.com or on 020 7337 0777.

Disclaimer
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