Looking for help with childcare costs?

Read our Real Cost of Childcare report 2017

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

BACKGROUND

The Government introduced significant measures in 2017 to help working families with the ever-increasing costs of childcare, with the aim of getting parents back to work. This comes in the form of the Tax-Free Childcare Scheme across the UK and an extra 15 hours of free childcare for three- and four-year-olds in England, in addition to an existing 15 hours already available. As a result of these schemes, parents should be better off if they use them to their full advantage.

In this report, we examine how widely adopted these schemes have been so far, how much parents are saving as a result and the impact the cost of childcare has had
on family planning. We conducted a survey of 2,000 working parents across the UK with children aged five and under, where household income is between £40,000 and £200,000 (a requirement of the Tax-Free Childcare Scheme and 30 Hours Free Childcare is that each parent must earn less than £100,000 per annum).

FAMILY PLANNING

One of the most worrying results from our survey was that over 47% of respondents said the high cost of childcare is putting them off having more children. In effect, the real cost of childcare is not merely a financial burden; it is shaping the demographics of the UK by exacerbating our declining population through smaller families.

Not only that, but respondents underestimated the cost of raising a child to the age of 18. The average estimate was £131,400, however it is actually closer to £199,000, according to the ‘NatWest Cost of Raising a Child Calculator’. This higher figure suggests that families could be even less inclined to have more children if they were aware of the higher cost.

Over 71% of respondents rely heavily on extended family as the main source of childcare – particularly grandparents. This would explain why the average amount spent per week, per child on childcare among those polled is the relatively low amount of £125.

FLEXIBLE WORKING

Flexible working has risen sharply in the last decade. Our survey revealed that almost 40% of respondents had cut back their working hours in the last five years due to the cost of childcare. More than double the number of women (49%) than men (22%) had cut down on their working hours in the last five years due to the cost of childcare.

ADOPTION OF TAX-FREE CHILDCARE SCHEME AND 30 HOURS FREE CHILDCARE

Therefore, it is disappointing that almost half of the respondents (47%) had not yet heard about the new Tax-Free Childcare Scheme. Not only because of the savings they could make from it, but also despite the widespread news on usability problems affecting the Government’s website introducing the schemes when it launched earlier in 2017.

Only 31% of those polled are using the existing allowance of 15 hours of free childcare and only 21% plan to use the full 30 hours, which they can use to pay for nurseries, childminders and playgroups.

Of those that plan to use the full 30 hours, it is edifying to see the majority (85%) found their local nursery can provide the extra 15 hours of free childcare – despite many nurseries expressing concern in the media about their ability to provide this.

MISSED SAVINGS

Parents could save £6,384 per annum, per child though the 30 hours of free childcare alone provided by the Government; they could save a further £2,000 per year through the Tax-Free Childcare Scheme (but they would need to pay £8,000 to childcare providers to access this).

These are considerable annual savings that, if invested sensibly, could grow into a sizeable nest egg to fund university tuition fees. Our survey showed that over seven in ten parents polled hope that at least one of their children will attend university and one in eight are planning on private education for their children.

SAVINGS HABITS

Looking at parents’ preferred savings habits, the average amount of savings per couple is 14% of household income. These preferred habits were spread out as follows (with some parents providing multiple answers): 64% are putting their money into savings accounts, followed by cash ISAs (37%), stocks & shares ISAs (18%), pensions (13%), unit trust funds (9%), direct investment in stocks (7%) and direct investment in bonds (4%).

When asked what parents would do with any potential savings from the new childcare schemes, respondents gave a variety of answers: 48% would add it to an existing savings account, 31% would put the money towards their mortgage, 18% planned to spend more on childcare, 10% were keen to invest, 9% would add to their pension and 4.5% would pay off debt.

REGIONAL VARIATIONS

Unsurprisingly, London emerged as the most expensive place for childcare with parents spending on average £152 per week compared to the lowest of £95 in the North East. The highest take up of the 15 hours of free childcare was in the East Midlands with 38% using the service, with the North East the lowest at 23%.

CONCLUSION

Since the Government has launched the two new initiatives, the Tax-Free Childcare Scheme and 30 hours free childcare, it will be an enormous help for many working parents struggling with the crippling costs of childcare. Parents will be able to save up to £8,384 a year if they use both schemes fully to their advantage.

Whilst life as a parent can be frantic, we urge all parents to follow three simple steps; do a little early planning, start saving regularly – no matter how small – and make use of the government initiatives available to you. All of these actions combined will make a significant difference in the long run.

Introduction

The UK has some of the highest childcare costs in the Western world, accounting for a large proportion of parents’ incomes. According to the Organisation for Economic Co-Operation and Development’s (OECD) Society at a Glance (October 2016)[1] study, the UK spends the most on childcare costs as a percentage of income, followed by New Zealand, Ireland and the US. The study found that couples living in the UK spend on average a third of their income on childcare, which means it may not be financially worthwhile for both partners to work and acts as a deterrent for many.

In Britain, childcare costs continue to soar: nursery fees have risen by a third in the last five years with parents now paying an average of £116 per week for a part-time nursery place, adding up to £6,000 per year. In London, the costs are much higher at £154 per week[2].

The Government has taken measures to address these rising costs with significant new schemes. These include the introduction of the Tax-Free Childcare Scheme for all parents in April 2017, and 30 hours free childcare a week for working parents of three- and four-year-olds in England from September 2017 (raised from a previous 15 hours free childcare).

In an effort to understand how working parents are managing childcare, we conducted a nationwide survey of 2,000 couples with incomes of between £40,000 and £100,000 each per annum, asking them a broad set of questions. We learned that many parents have to juggle a combination of childminder, nursery, grandparents and extended family members, in addition to navigating complex childcare schemes.

[1] Organisation for Economic Co-Operation and Development’s (OECD) Society at a Glance, October 2016
[2] The Family and Childcare Trust Childcare Survey 2017.

The Tax-Free Childcare Scheme

The Tax-Free Childcare Scheme launched in April 2017 allowing eligible families with children under the age of 12 to get 20% of their childcare costs paid by the Government. For every 80p put into a dedicated online account, the Government will add an extra 20p the same day. This is equivalent of the basic rate of tax, which gives the scheme its name – ‘tax-free’.

The Government promises savings of up to £2,000 per child per year. The scheme covers registered au pairs, childminders, nannies, nurseries, playgroups, breakfast clubs and more. To qualify for this scheme, both parents must be working and each much earn at least £120 per week and a maximum of £100,000 a year. The Government has estimated that approximately two million households will be eligible for this scheme, which is replacing Childcare Vouchers – due to be phased out by April 2018.

Our survey revealed that 47% of respondents were unaware of this latest development and of those who had heard of it, only 21% had already signed up. While 27% were planning to participate in the scheme, 36% said that they would not be taking part. When asked why they would not be participating, 63% of respondents stated that they were happy with the Childcare Voucher Scheme and/or 30 hours free childcare.

Nearly half (40%) of respondents are using Childcare Vouchers, where parents can exchange up to £243 a month of their gross salary for childcare vouchers. This is tax-free and exempt from National Insurance contributions allowing parents to make up to £933 of savings a year each.

Many parents could benefit by switching from Childcare Vouchers to the Tax-Free Childcare Scheme, in particular if they have high childcare costs or several children. The new scheme is also beneficial to the self-employed, who are currently denied access to Childcare Vouchers as they are only offered through employers. According to our survey, 8% of employers still do not provide this service.

The 30 hours free childcare

In September 2017, the Government introduced its flagship promise of 30 hours free childcare for working parents of three- and four-year-olds in England. Similar plans will be introduced for Scotland and Wales in the future and are currently being piloted. In Northern Ireland, childcare matters are devolved and there are not currently any plans to increase the level of preschool provision. Both parents must be working and each earn at least £120 per week and a maximum of £100,000 a year to qualify for this scheme.

The results of our survey found that 53% of respondents use nurseries as a childcare service, followed by 32% who use childminders. A high percentage of respondents cited both as being very important services. Surprisingly, only 14% of parents combine both services in order to juggle their childcare needs. It seems that family support and reduced working hours make up the shortfall. Interestingly, our poll showed that only a third (31%) were using the 15 hours of free childcare available to three- and four-year-olds. Our survey showed that over 19% found the application process too complicated and 13% didn’t know where to start with their application. Yet those already enrolled in the scheme seem to be impressed by its benefits: of the 31% using the existing 15 hours of free childcare, three quarters (75%) are planning to take advantage of the additional 15 hours made available in September 2017. Many nurseries have expressed deep concern about being able to survive financially given the lower income they will receive as the Government does not pay as much as a parent would ordinarily. This could lead to costs rising for parents in other ways such as higher bills for lunches, snacks and items that were previously included. Costs for non-funded hours could also increase for those who fall out of the qualifying age limits. Over 71% of respondents rely on extended family as the main source of childcare (please see the Importance of Family on page 18), which explains the low take-up of the 15 hours of free childcare. This would explain why the average amount spent per week, per child on childcare among those polled is the relatively low amount of £125 – rising to £152 for parents in London (please see our regional breakdown of results at the end of the report). In fact, 29% of those surveyed said that they do not use nurseries or childminders. A very low percentage (5%) said their nursery had run out of spaces, but the majority at 85% responded that their local nursery was able to provide the extra 15 hours of free childcare – despite many nurseries expressing concern about their ability to provide this.

Savings from the Government’s childcare schemes

The Tax-Free Childcare Scheme promises to pay parents up to £2,000 per child, per year provided that the parents add £8,000 to the dedicated online account. For those parents taking advantage of the 30 hours of free childcare, they could be saving as much as £6,384 – working on the average hourly cost of a nursery at £5.60 [3]. Therefore, the combined cost savings of both schemes is £8,384 per couple per annum.

If we look at the 30 hours of free childcare alone, 69% of parents are not using the initial free 15 hours and 79% do not know about or plan to use the full 30 hours. These parents are paying approximately £1,500 a year for childcare on average, which the initial 15 hours at £3,192 would more than cover if it was utilised. If the full 30 hours was utilised, the average parent would be able to lessen their reliance on family members and still not end up out of pocket, to the tune of an extra £4,884 in free childcare.

However, when asked how much parents thought they could save from using the Tax-Free Childcare Scheme and the 30 hours free childcare, the average amount estimated was only £1,736.

 

[3] Childcare.co.uk, April 2017.

Current savings habits

Of those households that save regularly (74%), the average amount saved per couple is 14% of household income. A quarter (26%) only save between 1-5% of their household income. The majority (64%) put money into cash savings accounts, followed by cash ISAs (37%), stocks & shares ISAs (18%), pensions (13%), unit trust funds (9%), direct investment in stocks (7%) and direct investment in bonds (4%) (with some parents providing multiple answers). A small minority (4.6%) use their savings for a range of debts and alternative investments such as paying off debt, overpaying on their mortgage, P2P lending and investing in property.

When asked what respondents would do with any savings from the Government’s childcare schemes, half (48%) said they would add any savings to an existing savings account. That was followed by 31% who would pay more money towards a mortgage; 18% planned to spend more on childcare; 10% wanted to invest the money, 9% would add to their pension and 5% said they would pay off debt (again some provided multiple answers).

Parents are putting away 11% of their savings specifically for their children’s future.

Private education and university ambitions

One in eight (13%) respondents are planning to send at least one of their children to private school. Of this group, 82% have already started to save for this.

In the last Killik Private Education Index[4], our research showed the average annual private school fees had increased to £13,194 per annum in 2015. Fees in London and the South East continued to increase more each year than other parts of the country and stood at £15,500 and £14,350 per annum respectively[5]. Fees increased 3.5% on average in 2016, according to the Index.

Over an education of 14 years, the total sum for a day school, with educational extras, is £286,000. Our research highlighted that affordability for school fees is reducing for those who may have historically sent their children to private school. For many families, a private education is only affordable where both parents are working but even then the fees can be a serious financial concern. The trend of fees rising more rapidly than wages means that it will gradually mean less and less people are able to send their children to private school. However, we are seeing an increasing number of grandparents from the ‘baby boomer’ generation offering to help with paying private school fees[6].

For parents looking for help with the costs of private education, it is worth noting that keeping your child in a state school until the age of 8 would cut £97,000 – more than a third – off the total cost of a private education.

Three quarters of parents (74%) from our current childcare survey are hoping that at least one of their children will go to university.

The cost of private education and university tuition fees requires careful financial planning, especially if parents do not want their children burdened with debt on graduation. There are many tax efficient ways of saving including grandparents setting up a trust to pay for their grandchildren’s education as they can use their grandchildren’s tax-free allowance. A bear trust can be set up to pay for school fees and allow grandchildren to receive up to £650,000 under the nil rate band. That money is excluded from the grandparents’ taxable estate as long as they live for seven years afterwards.

 

[4] Killik & Private Education Index, 2015
[5] The Independent Schools Council
[6] Killik Private Education Index, 2015.

Importance of family

Parents’ wider family members play a vital role in childcare, with 71% of those polled relying on family for childcare to enable parents to work. Over 92% of that help comes from grandparents (or 65% of the total respondents), who are increasingly being called upon to help with childcare as parents struggle with costs and balancing work. The amount of childcare that grandparents provide has risen sharply over the last decade. Aunts and uncles also play an important role in helping with childcare according to 34% of those polled, and sprightly great-grandparents and cousins get involved too (9% and 8% respectively).

Over 9.2 million grandparents spend an average of nine hours a week looking after grandchildren, saving parents over £1,900 in childcare fees[7].

The Government has recognised the importance of the army of grandparents called upon to help and has given them the right to take time off work if they are still in employment, with the current system of shared parental leave being extended to cover grandparents during the first year of a child’s life. Grandparents are ideal carers as they have a wealth of experience and know what raising a family is like. Most of their hard work, however, is unpaid.

From our survey, over one in five (22%) of those polled are hoping that their parents or grandparents will contribute to the costs of raising their child/children. Of this group, three quarters also expected this to involve help with childcare on a regular basis. That was followed by 38% hoping for help with tuition fees, 22% expecting help with schooling and 19% anticipated support with their child’s first home.

Of those that rely on extended family support, 92% of that care comes from grandparents who help out with childcare at home (or 65% of the total respondents).

 

[7] RIAS, 2015.

Real cost of raising a child

Our survey showed that over 38% of those polled said that the costs of childcare have increased significantly over the last two years.

We asked respondents across the UK how much they thought it cost to raise a child to the age of 18 and found that parents are underestimating the real cost with the average national response £131,432. In fact, the average figure respondents in London quoted was £125,034, which was the lowest nationally and the most inaccurate given that London is the most expensive place in the UK to raise a child.

According to the ‘NatWest Cost of Raising a Child Calculator’ the costs are closer to £198,949. Furthermore, the Centre of Economic and Business Research (CEBR)
in 2016 calculated that the costs of raising a child to the age of 21 was £232,000 across the UK, which does not include private education but it does include university tuition fees. This represents an increase of 65% since 2003 when the annual research started.

To cope with these rising costs, many are choosing to have children at a later age when they will be earning more and in a position to own their first home. Additionally, families are having to cut back on spending money on holidays, hobbies, toys and leisure.

Shockingly, over 47% of respondents said that the cost of childcare was putting them off from having more children. When we looked at the gender split for this response there was little difference – 42% of men said the cost of childcare put them off having more children with 49% of women responding similarly. We also broke down the respondents by their earnings, and all wage brackets were similarly discouraged to have more children because of the costs of childcare; for example, 48% of those earning between £40,000-100,000 were discouraged, 40% of those earning between £100,000-150,000 and 45% of those earning between £150,000-200,000.

These higher than expected figures for raising a child could suggest that if more families were aware of the real costs, even more may have to reconsider the size of their family.

Rise of flexible working

Flexible working has taken off in the last decade with the number of workplaces offering staff the opportunity to work flexibly more than doubling. It has become a fundamental part of the modern workplace since the Children & Families Act came into force in 2014 and now all employees in the UK have the legal right to request flexible working.

Notably two in five (39%) respondents of our survey have cut back on their working hours in the last five years due to the cost of childcare. More than half (57%) of these respondents have reduced the amount they work per week by two or more days in the last five years. Even those on a higher salary have cut back their hours by two days.

More than double the number of women than men had cut down on their working hours in the last five years due to the cost of childcare – 49% versus 22% respectively (please see Gender Breakdown overleaf ).

Gender breakdown

Approximately two-thirds of the survey were mothers (65%) and one-third were (35%) fathers. The numbers using nurseries and childminders were very similar with both sexes spending the same and stating these are very important childcare services.

Although 40% of fathers and mothers have cut back their working hours since having a child over the past five years on average due to the cost of childcare, there is a significant gender imbalance. More than double the number of mothers (49%) than fathers (22%) have cut down on their working hours. They had cut down their hours as follows:

Otherwise, both mothers and fathers answered similarly on issues such as:

·         Knowledge of the schemes available;

·         Reasons for not using them;

·         Complications during the application process;

·         And reliance on extended family members.

When asked what they would spend any potential savings made through the Government’s childcare schemes, the response was as follows split by gender. The main differences are that fathers are keener on spending additional savings on more childcare, while mothers are more likely to add cash to a savings account.

On average, fathers thought that they could save £1,665 per child, per year from the Tax-Free Childcare Scheme and the 30 hours of free childcare. This compares to £1,778 for mothers. Fathers save 15% of their income per month, while mothers save 13%. These savings were spread across various savings and investment vehicles.

Mothers and fathers saved 11% and 12% of their savings specifically for their child/children’s future. More fathers than mothers (17% versus 10%) would like to send their children to private school. The number of fathers hoping to send their child to university was also slightly higher (76% versus 73%).

A quarter (26%) of fathers expect parents or grandparents to contribute to the cost of raising their child/children, versus a fifth of women. This help would come in the following form:

Regional breakdown

Unsurprisingly, London emerged as the region spending the most on nursery and childminder fees at £152 per week compared to the North East, where respondents spend £95 on average.

The East Midlands had the highest take up of the 15 hours of free childcare by 38% of respondents, whilst in the North East, the figure is only 23%. In Yorkshire and the Humber, 89% of those currently using the 15 hours are planning on using the full 30 hours of free childcare now available. Scotland came out as the region with the highest percentage (62%) of respondents relying on extended families to look after their children, followed by Northern Ireland (61%) and the North West (60%). Londoners rely the least on family (40%) but the most on friends (17%) in the UK. The South East (29%), South West (28%) and East of England (23%) had the highest number of respondents where neither family nor friends help with childcare.

As mentioned earlier in the report, grandparents provide the bulk of the childcare and interestingly in London, 17% of those polled said great-grandparents look after their great-grandchildren – double the figure for the rest of the nation. The percentage of aunts and uncles as care providers is also high ranging from 29% in the North West to 45% in Scotland. Cousins also play an active role – especially in London, according to 13% of respondents.

Londoners get the least amount of help at 40% with childcare from their extended family and friends, while Scotland gets the highest amount (62%). However, they do receive the most assistance financially, with 34% getting regular income, 21% receiving investments into – and 4% getting help with trusts. Looking at the Tax-Free Childcare Scheme, 63% of those polled in Northern Ireland had not heard about the scheme yet followed by 57% in Wales. Northern Ireland had the lowest take up of the scheme at 6%, with 61% stating that they would not be signing up to the scheme. London had the highest take up at 35% with a further 36% planning to sign up.

When asked what parents would do with any savings they made from the Government’s help schemes, 32% of Londoners responded they would spend more on childcare, which was more than double that of most other regions. Looking at the savings that parents could make, Londoners estimated it would be in the region of £2,321, which was the highest across the UK; the lowest was in Northern Ireland at £1,105.

The survey reveals that Londoners are saving the highest amount of their household income at 19%. Savings practices were similar across all regions, with the majority of respondents putting money into cash savings accounts. Again in London, the percentage of savings for their child/children’s future was the highest in the UK at 17% compared to the lowest in the South West at 9%.

Looking at the percentage of parents wanting to send their child to private school, the highest figure was in London with 31% and the lowest figure was in Wales with just over 1%. The vast majority (87%) of Londoners hoping to send their child to private school have already started saving for this. Across the UK, most have aspirations for their children to attend university ranging from 63% in the North East to 85% in Scotland.

Throughout the UK, over 47% of parents said that the cost of childcare was putting them off having more children. This was highest in the East Midlands at 57% and lowest in Yorkshire and the Humber at 41%.

Londoners were expecting the most help financially from their parents/grandparents at 32%, compared to 10% in Northern Ireland and the average national response of 20%. The majority of respondents were hoping their parents or grandparents would help with childcare; this was most noticeable in the West Midlands with 84% and lowest in Northern Ireland at 60%.

Respondents’ estimates of the average cost of raising a child to the age of 18 was similar across the UK at £131,432. Londoners estimated the lowest at £125,034, which was surprising given that it is the most expensive place to live in the UK.

Conclusion

The latest Government initiatives of the Tax-Free Childcare Scheme and 30 hours free childcare will be an enormous help for many working parents struggling with the crippling costs of childcare. Parents will be able to save up to £8,384 a year if they use both schemes fully to their advantage. We would encourage parents to direct these extra funds into a dedicated savings account or investment pot.

 

Realistically, many parents will not want to or may be unable to spend the £8,000 per annum required in order to get the full £2,000 contribution from the Government under the Tax-free Childcare Scheme. However, all parents of three- and four-year-olds can benefit from the 30 hours of free childcare – worth a total of £6,384 per annum. As the average parent spends approximately £6,500 per year on childcare, this is almost completely covered by the amount saved.

Investing or saving this significant sum would be a huge advantage to parents hoping to send their child to private school or university. Over the course of 18 years, it is possible to build up a sizeable sum by investing early and regularly, and parents can benefit from the power of compounding over time.

We believe if parents are well-prepared with their savings and investments, there may be fewer couples who feel disinclined from having more children in future.

Appendices: Detailed Regional Breakdown

London

1. In London, 31% of respondents send their children to nursery with 28% choosing a childminder to care for their child/children. To fit in with their working arrangements, 23% of parents used a combination of nursery and childminder, whilst 18% didn’t use either

2. Of the respondents who use a childminder, 62% felt it was a very important service

3. For those that use nursery for childcare, 81% said it was a very important service

4. Interestingly in London, only 54% of those polled stated that family was a very important childcare service, which is the lowest number nationally. Whereas, 48% cited after school clubs as a very important service and this was the highest figure nationally

5. On average, parents in London spend £152 in total on nursery fees and/ or childminder fees per week per child, in pounds. This is the highest figure nationally and compares to £95 in the North East

6. 32% are currently using the Government’s allowance of 15 hours of free childcare for three- and four-year- olds

7. Of that group, 82% are planning to take advantage of the extra 15 hours, totaling 30 hours, of free childcare introduced in September 2017

8. When asked why respondents were not currently using the Government’s allowance of 15 hours free childcare for three- and four-year- olds, the answers in London were as follows:

9. 83% said their local nursery can provide the extra 15 hours of free childcare

10. In London, over 40% of respondents get help with childcare from their extended family members and 17% receive help from friends. 22% get help from both
family and friends

11. For over 83% of Londoners, grandparents help with childcare and even 17% get help from great-grandparents. Aunts and uncles also play a big role in childcare with 35% of respondents saying they help with 13% additionally receiving help from cousins

12. Family and friends in London help as follows:

13. 42% currently use Childcare Vouchers provided as a benefit by their employer

14. Over 50% have not yet heard about the new Tax-Free Childcare Scheme that started in 2017

15. Of those that have heard about the Tax-Free Childcare Scheme, 35% have already signed up to it whilst 36% are planning to. However, 11% are not sure yet and 18% have said that they will not be participating

16. Of those that have used the Tax-Free Childcare Scheme so far, 20% cited it as a very good service, despite the problems it had at launch

17. 77% stated that they would not be participating in the Tax-Free Childcare Scheme because they are happy with the Childcare Voucher Scheme and/or 30 hours of free childcare. 10% found the application process too confusing

18. When asked what respondents would do with any extra savings they would make through the Government’s childcare help schemes, the answers were as follows:

19. The average amount that respondents thought they could save per child/per year with the savings made available via the tax-free childcare and/or 30 hours free childcare scheme was £2,321.02. This was the highest amount nationally

20. In London on average, respondents saved 19% of their household income per month

21. Respondents living in London allocated their household income savings each
month in the following ways:

22. On average 17% of Londoners’ savings and/or investments are for their child/ children’s future

23. 31% are planning to send their child/children to private school and 20% are still undecided

24. Of those that responded positively, 87% have already started saving for their child/children’s private school education

25. 71% of Londoners aspire for their children to attend university

26. Over 50% stated that the high cost of childcare is putting them off from having more children

27. On average, for those parents who are planning to have another child, they intend to wait almost three years

28. 32% of those polled in London are hoping that their parents or grandparents will contribute to the cost of raising their child/children. This is the highest number in the UK

29. In London over 72% expect their parents or grandparents to help with childcare. This is followed by 46% who would like help with schooling, 38% with university fees and 13% with their child’s first home

30. When asked how much approximately it costs to raise a child (up to 18 years of age and before education fees) the average was £125,034.21. This was a surprising result given that childcare costs are higher in London and it was the lowest figure given across the nation

31. 32% of Londoners had to cut back on their working hours in the last five years due to the cost of childcare. This was the lowest figure in the UK

32. Overall, 38% have reduced their working hours by one day per week due to the cost of childcare in the last five years, with a further 30% having cut down by two days per week

33. 42% believe the costs of childcare in London have increased significantly over the last two years.

East of England

1. In the East of England, 35% of respondents send their children to nursery with 20% choosing a childminder to care for their child/children. To fit in with their working arrangements, 10% of parents used a combination of nursery and childminder, whilst 35% didn’t use either

2. Of the respondents who use a childminder, 77% felt it was a very important service

3. For those that use nursery for childcare, 85% said it was a very important service

4. In the East of England, 64% of those polled stated that family was a very important childcare service, which is the highest number nationally. Whereas, 31% cited after school clubs as a very important service and this was the highest figure nationally

5. On average, parents in East England spend £119 in total on nursery fees and/or childminder fees per week per child.

6. 23% are currently using the Government’s allowance of 15 hours of free childcare for three- and four-year-olds

7. Of that group, 71% are planning on taking advantage of the extra 15 hours, totaling 30 hours, of free childcare introduced in September 2017

8. When asked why respondents were not currently using the Government’s allowance of 15 hours free childcare for three- and four-year-olds, the answers in the East of England were as follows:

9. 86% said their local nursery can provide the extra 15 hours of free childcare

10. In the East of England, over 51% of respondents get help with childcare from their extended family members and 6% receive help from friends. 21% get help from both family and friends

11. For over 91% of respondents in the East of England, grandparents help with childcare and 5.6% get help from great-grandparents. Aunts and uncles also play a big role in childcare with 30% of respondents saying they help with 9% additionally receiving help from cousins

12. Family and friends in the East of England help as follows:

13. 40% currently use Childcare Vouchers provided as a benefit by their employer

14. 45% have not yet heard about the new Tax-Free Childcare Scheme that started in 2017

15. Of those that have heard about the Tax-Free Childcare Scheme, 20% have already signed up to it whilst 22% are planning to. However, 13% are not sure yet and 45% have said that they will not be participating

16. Of those that have used the Tax-Free Childcare Scheme so far, 21% cited it as a very good service, despite the problems it had at launch

17. 50% stated that they would not be participating in the Tax-Free Childcare Scheme because they are happy with the Childcare Voucher Scheme and/or 30 hours of free childcare. 11% found the application process too confusing

18. When asked what respondents would do with any extra savings they would make through the Government’s childcare help schemes, the answers were as follows:

19. The average amount that respondents thought they could save per child/per year with the savings made available via the tax-free childcare and/or 30 hours free childcare scheme was £1,662.98

20. In the East of England on average, respondents saved 12% of their household income per month

21. Respondents living in the East of England allocated their household income savings each month in the following ways:

22. On average of those polled in East England, 10% of their savings and/or investments are for their child/children’s future

23. 9% are planning to send their child/ children to private school and 15% are still undecided

24. Of those that responded positively, 69% have already started saving for their child/children’s private school education

25. 73% aspire for their children to attend university

26. 45% stated that the high cost of childcare is putting them off from having more children

27. On average, for those parents who are planning to have another child, they intend to wait over two years

28. 21% of those polled in the East of England are hoping that their parents or grandparents will contribute to the cost of raising their child/children

29. 69% expect their parents or grandparents to help with childcare. This is followed by 42% who would like help with University fees, 25% with schooling and
14% with their child’s first home

30. When asked how much approximately it costs to raise a child (up to 18 years of age and before education fees) the average was £ 135,084.61

31. 37% of respondents in the East of England have cut back on their working hours in the last five years due to the cost of childcare

32. Overall, 56% have reduced their working hours by two days per week due to the cost of childcare in the last five years, with a further 23% having cut down by one day per week

33. The same proportion of respondents (37%) believe and don’t believe that the costs of childcare in the East of England have increased significantly over the last two years.

East Midlands

1. In the East Midlands, 41% of respondents send their children to nursery with 14% choosing a childminder to care for their child/children. To fit in with their working arrangements, 18% of parents used a combination of nursery and childminder, whilst 28% didn’t use either

2. Of the respondents who use a childminder, 89% felt it was a very important service

3. For those that use nursery for childcare, 91% said it was a very important service, the highest number nationally

4. In the East Midlands, 70% of those polled stated that family was a very important childcare service, which is the second highest number nationally. Whereas, 44% cited after school clubs as a very important service

5. On average, parents in the East Midlands spend £122 in total on nursery fees and/or childminder fees per week per child, in pounds

6. 38% are currently using the Government’s allowance of 15 hours of free childcare for three- and four-year-olds. This is the highest figure in England

7. Of that group, 77% are planning to take advantage of the extra 15 hours, totaling 30 hours, of free childcare introduced in September 2017

8. When asked why respondents were not currently using the Government’s allowance of 15 hours free childcare for three- and four-year- olds, the answers in the East Midlands were as follows:

9. 95% said their local nursery can provide the extra 15 hours of free childcare

10. In the East Midlands, over 54% of respondents get help with childcare from their extended family members and 4% receive help from friends. 27% get help from both family and friends

11. For over 95% of respondents, grandparents help with childcare and even 10% get help from great-grandparents. Aunts and uncles also play a big role in childcare with 39% of respondents saying they help with 14% additionally receiving help from cousin

12. Family and friends in the East Midlands help as follows:

13. 50% currently use Childcare Vouchers provided as a benefit by their employer. This was the highest figure nationwide

14. 34% have not yet heard about the new Tax-Free Childcare Scheme that started in 2017, which is the lowest figure in the UK

15. Of those that have heard about the Tax-Free Childcare Scheme, 21% have already signed up to it whilst 20% are planning to. However, 19% are not sure yet and 41% have said that they will not be participating

16. Of those that have used the Tax-Free Childcare Scheme so far, 68% cited it as a satisfactory service, despite the problems it had at launch

17. 76% stated that they would not be participating in the Tax-Free Childcare Scheme because they are happy with the Childcare Voucher Scheme and/or 30 hours of free childcare

18. When asked what respondents would do with any extra savings they would make through the Government’s childcare help schemes, the answers were as follows:

19. The average amount that respondents thought they could save per child/per year with the savings made available via the tax-free childcare and/or 30 hours free childcare scheme was £ 1,622.76

20. In the East Midlands on average, respondents saved 12% of their household income per month

21. Respondents living in the East Midlands allocated their household income savings each month in the following ways:

22. On average 10% of savings and/or investments are for their child/children’s future

23. 14% are planning to send their child/ children to private school and 10% are still undecided

24. Of those that responded positively, 58% have already started saving for their child/children’s private school education

25. 78% of those surveyed in the East Midlands aspire for their children to attend university

26. 60% stated that the high cost of childcare is putting them off from having more children. This was the highest figure in the UK

27. On average, for those parents who are planning to have another child, they intend to wait almost three years

28. 23% of those polled in the East Midlands are hoping that their parents or grandparents will contribute to the cost of raising their child/children

29. 81% expect their parents or grandparents to help with childcare. This is followed by 35% who would like help with schooling, 55% with university fees and 42% with their child’s first home -the highest figure in the country by far

30. When asked how much approximately it costs to raise a child (up to 18 years of age and before education fees) the average was £ 133,821.33

31. 49% of those polled in East Midlands have cut back on their working hours in the last five years due to the cost of childcare

32. Overall, 43% have reduced their working hours by two days per week due to the cost of childcare in the last five years, with 31% having cut down by one day per week

33. 52% believe the costs of childcare in the East Midlands have increased significantly over the last two years, the largest proportion in the UK.

North East

1. In the North East, 44% of respondents send their children to nursery with 28% choosing a childminder to care for their child/children. To fit in with their working arrangements, 13% of parents used a combination of nursery and childminder

2. Of the respondents who use a childminder, 57% felt it was a very important service

3. For those that use nursery for childcare, 80% said it was a very important service

4. In the North East, 65% of those polled stated that family was a very important childcare service. Whereas, 29% cited after school clubs as a somewhat important service

5. On average, parents in the North East spend £95 in total on nursery fees and/ or childminder fees per week per child, in pounds. This is the lowest figure nationally and compares to £152 in London

6. 23% are currently using the Government’s allowance of 15 hours of free childcare for three and four-year- olds

7. Of that group, 85% are planning to take advantage of the extra 15 hours, totaling 30 hours, of free childcare introduced in September 2017

8. When asked why respondents were not currently using the Government’s allowance of 15 hours free childcare for three- and four-year- olds, the answers in the North East were as follows:

9. 94% said their local nursery can provide the extra 15 hours of free childcare

10. In the North East, 48% of respondents get help with childcare from their extended family members and 15% receive help from friends. A further 17% get help from both family and friends

11. For over 95% of North Easterners, grandparents help with childcare and even 9% get help from great-grandparents. Aunts and uncles also play a big role in childcare with 32% of respondents saying they help with 5% additionally receiving help from cousins

12. Family and friends in the North East help as follows:

13. 33% are currently using Childcare Vouchers provided as a benefit by their employer

14. 53% have not yet heard about the new Tax-Free Childcare Scheme that started in 2017

15. Of those that have heard about the Tax-Free Childcare Scheme, 22% have already signed up to it whilst 26% are planning to. However, 26% are not sure yet and 26% have said that they will not be participating

16. Of those that have used the Tax-Free Childcare Scheme so far, 30% cited it as a very good service, despite the problems it had at launch

17. 92% stated that they would not be participating in the Tax-Free Childcare Scheme because they are happy with the Childcare Voucher Scheme and/or 30 hours of free childcare. This is the highest figure nationwide

18. When asked what respondents would do with any extra savings they would make through the Government’s childcare help schemes, the answers were as follows:

19. The average amount that respondents thought they could save per child/per year with the savings made available via the Tax-Free Childcare Scheme and/or 30 hours free childcare scheme was £1,761.24

20. In the North East on average, respondents saved 14.2% of their household income per month

21. Respondents living in the North East allocated their household income savings each month in the following ways:

22. On average, 13% of savings and/or investments by those polled in the North East is for their child/children’s future

23. 85% are not planning to send their child/ children to private school and 12% are still undecided

24. Of the 3% that are planning to send their children to private school, 100% have already started saving for their child/children’s private school education

25. 63% of respondents in the North East aspire for their children to attend university, the lowest figure in the UK

26. 43% stated that the high cost of childcare is putting them off from having more children

27. On average, for those parents who are planning to have another child,
they intend to wait just over two years

28. 19% of those polled in the North East are hoping that their parents or grandparents will contribute to the cost of raising their child/children

29. In the North East over 56% expect their parents or grandparents to help with childcare and 56% with university fees. This is followed by 12% with their child’s first home and 6% who would like help with schooling

30. When asked how much approximately it costs to raise a child (up to 18 years of age and before education fees) the average was £128,284.16

31. 37% of those surveyed in the North East have cut back on their working hours in the last five years due to the cost of childcare

32. Overall, 41% have reduced their working hours by one day per week due to the cost of childcare in the last five years, with a further 31% having cut down by two days per week

33. 37% believe the costs of childcare in North East have increased significantly over the last two years.

North West

1. In the North West, 35% of respondents send their children to nursery with 13% choosing a childminder to care for their child/children. To fit in with their working arrangements, another 13% of parents used a combination of nursery and childminder

2. Of the respondents who use a childminder, 77% felt it was a very important service

3. For those that use nursery for childcare, 91% said it was a very important service

4. In the North West, 70% of those polled stated that family was a very important childcare service. Whereas, 39% cited after school clubs as a very important service

5. On average, parents in North West spend £129 in total on nursery fees and/or childminder fees per week per child, in pounds

6. 31% are currently using the Government’s allowance of 15 hours of free childcare for three- and four-year- olds

7. Of that group, 74% are taking advantage of the extra 15 hours, totaling 30 hours, of free childcare introduced in September 2017

8. When asked why respondents were not currently using the Government’s allowance of 15 hours free childcare for three- and four-year- olds, the answers in the North West were as follows:

9. 88% said their local nursery can provide the extra 15 hours of free childcare

10. In the North West, over 60% of respondents get help with childcare from their extended family members and 6% receive help from friends. 14.22% get help from both family and friends

11. For 93%, grandparents help with childcare and 7% get help from their great-grandparents. Aunts and uncles also play a role in childcare with 29% of respondents saying they help, with 8% additionally receiving help from cousin

12. Family and friends in the North West help as follows:

13. 35% currently use Childcare Vouchers provided as a benefit by their employer

14. 52% have not yet heard about the new Tax-Free Childcare Scheme that started
in 2017

15. Of those that have heard about the Tax-Free Childcare Scheme, 18% have already signed up to it whilst 30% are planning to. However, 14% are not sure yet and 38% have said that they will not be participating

16. Of those that have used the Tax-Free Childcare Scheme so far, 32% cited it as a very good service, despite the problems it had at launch

17. 59% stated that they would not be participating in the Tax-Free Childcare Scheme because they are happy with the Childcare Voucher Scheme and/or 30 hours of free childcare. 5% found the application process too confusing

18. When asked what respondents would do with any extra savings they would make through the Government’s childcare help schemes, the answers were as follows:

19. The average amount that respondents thought they could save per child/per year with the savings made available via the tax-free childcare and/or 30 hours free childcare scheme was £ 1,744.43

20. In the North West on average, respondents saved 14% of their household income per month

21. Respondents living in the North West allocated their household income savings each month in the following ways:

22. On average 10% of savings of respondents in the North West and/or investments are for their child/children’s future

23. 6% are planning to send their child/ children to private school and 21% are still undecided (the highest figure in the UK)

24. Of those that responded positively, 77% have already started saving for their child/children’s private school education

25. 75% aspire for their children to attend university

26. 47% stated that the high cost of childcare is putting them off from having more children

27. On average, for those parents who are planning to have another child, they intend to wait two years

28. 18% of those polled in the North West are hoping that their parents or grandparents will contribute to the cost of raising their child/children

29. In the North West 75% expect their parents or grandparents to help with childcare. This is followed by 32% who need help with university fees and 15% with their child’s first home

30. When asked how much approximately it costs to raise a child (up to 18 years of age and before education fees) the average was £137,853.36. This was the highest figure in the UK

31. 33% of those polled in the North West have cut back on their working hours in the last five years due to the cost of childcare

32. Overall, 39% have reduced their working hours by one day per week due to the cost of childcare in the last five years, with a further 42% having cut down by two days per week

33. 37% believe the costs of childcare in the North West have increased significantly over the last two years.

South East

1. In the South East, 38% of respondents send their children to nursery with 15% choosing a childminder to care for their child/children. To fit in with their working arrangements, 12% of parents used a combination of nursery and childminder, whilst 35% didn’t use either

2. Of the respondents who use a childminder, 84% felt it was a very important service

3. For those that use nursery for childcare, 85% said it was a very important service

4. In the South East, only 65% of those polled stated that family was a very important childcare service. Whereas, 29% cited after school clubs as a very important service

5. On average, parents in the South East spend £136 in total on nursery fees and/ or childminder fees per week per child, in pounds

6. 37% are currently using the Government’s allowance of 15 hours of free childcare for three- and four-year-olds.

7. Of that group, 79% are planning to take advantage of the extra 15 hours, totaling 30 hours, of free childcare introduced in September 2017

8. When asked why respondents were not currently using the Government’s allowance of 15 hours free childcare for three- and four-year-olds, the answers in the South East were as follows:

9. 88% said their local nursery can provide the extra 15 hours of free childcare

10. In the South East, over 52% of respondents get help with childcare from their extended family members and 4% receive help from friends. 15% get help from both family and friends

11. For over 94% in the South Eastern, grandparents help with childcare and even 7% get help from great-grandparents. Aunts and uncles also play a big role in childcare with 35% of respondents saying they help with 6% additionally receiving help from cousins

12. Family and friends in the South East help as follows:

13. Childcare Vouchers proved popular with 41% currently using these vouchers provided as a benefit by their employer

14. 46% have not heard about the new Tax-Free Childcare Scheme that started in 2017

15. Of those that have heard about the Tax-Free Childcare Scheme, 21% have already signed up to it whilst 26% are planning to. However, 17% are not sure yet and 36% have said that they will not be participating

16. Of those that have used the Tax-Free Childcare Scheme so far, 22% cited it as a very good service, despite the problems it had at launch

17. 60% stated that they would not be participating in the Tax-Free Childcare Scheme because they are happy with the Childcare Voucher Scheme and/or 30 hours of free childcare. 3% found the application process too confusing

18. When asked what respondents would do with any extra savings they would make through the Government’s childcare help schemes, the answers were as follows:

19. The average amount that respondents thought they could save per child/per year with the savings made available via the tax-free childcare and/or 30 hours free childcare scheme was £ 1,475.34

20. In the South East on average, respondents saved 13% of their household income
per month

21. Respondents living in the South East allocated their household income savings
each month in the following ways:

22. On average 10% of respondents in the South East’s savings and/or investments are for their child/children’s future

23. 12% are planning to send their child/ children to private school and 17% are still undecided

24. Of those that responded positively, 82% have already started saving for their child/children’s private school education

25. 72% aspire for their children to attend university

26. 49% stated that the high cost of childcare is putting them off from having more children

27. On average, for those parents who are planning to have another child, they intend to wait two years

28. 24% of those polled in the South East are hoping that their parents or grandparents will contribute to the cost of raising their child/children

29. In the South East over 78% expect their parents or grandparents to help with childcare. This is followed by 37% who would like help with university fees, 35% with schooling and 21% with their child’s first home

30. When asked how much approximately it costs to raise a child (up to 18 years of age and before education fees) the average was £134,036.01

31. 40% of those polled in the South Eastern have cut back on their working hours in the last five years due to the cost of childcare

32. Overall, 30% have reduced their working hours by one day per week due to the cost of childcare in the last five years, with a further 49% having cut down by two days per week

33. 36% believe the costs of childcare in the South East have increased significantly over the last two years.

South West

1. In the South West, 46% of respondents send their children to nursery with 14% choosing a childminder to care for their child/children. To fit in with their working arrangements, 9% of parents used a combination of nursery and childminder, whilst 31% didn’t use either

2. For those that use nursery for childcare, 87% said it was a very important service

3. Of the respondents who use a childminder, 86% felt it was a very important service

4. Interestingly in the South West, only 66% of those polled stated that family was a very important childcare service. Whereas, 36% cited after school clubs as a very important

5. On average, parents in the South West spend £120 in total on nursery fees and/ or childminder fees per week per child, in pounds

6. 32% are currently using the Government’s allowance of 15 hours of free childcare for three- and four-year-olds

7. Of that group, 72% are planning to take advantage of the extra 15 hours, totaling 30 hours, of free childcare introduced in September 2017

8. When asked why respondents were not currently using the Government’s allowance of 15 hours free childcare for three- and four-year-olds, the answers in the South West were as follows:

9. 87% said their local nursery can provide the extra 15 hours of free childcare

10. In the South West, over 44% of respondents get help with childcare from their extended family members and 2% receive help from friends. A further 25% get
help from both family and friends

11. For 96% of those surveyed in the South West, grandparents help with childcare and 6% get help from their great-grandparents. Aunts and uncles play a big role in childcare with 35% of respondents saying they help with 9% additionally receiving help from cousins

12. Family and friends in the South West help as follows:

13. Childcare Vouchers proved popular with 41% currently using these vouchers provided as a benefit by their employer

14. 42% have not heard about the new Tax-Free Childcare Scheme that started in 2017

15. Of those that have heard about the Tax-Free Childcare Scheme, only 15% have already signed up to it whilst 31% are planning to. However, 23% are not sure yet and 31% have said that they will not be participating

16. Of those that have used the Tax-Free Childcare Scheme so far, only 8% cited it as a very good service

17. 67% stated that they would not be participating in the Tax-Free Childcare Scheme because they are happy with the Childcare Voucher Scheme and/or 30 hours of free childcare

18. When asked what respondents would do with any extra savings they would make through the Government’s childcare help schemes, the answers were as follows:

19. The average amount that respondents thought they could save per child/per year with the savings made available via the tax-free childcare and/or 30 hours free childcare scheme was £ 1,434.36

20. In the South West on average, respondents saved 12% of their household income per month

21. Respondents living in the South West allocated their household income savings each month in the following ways:

22. On average 9% of respondents in the South West’s savings and/or investments are for their child/children’s future

23. 13% are planning to send their child/ children to private school and 19% are still undecided

24. Of those that responded positively, 76% have already started saving for their child/children’s private school education

25. 74% aspire for their children to attend university

26. 43% stated that the high cost of childcare is putting them off from having more children

27. On average, for those parents who are planning to have another child, they intend to wait two years

28. 19% of those polled in the South West are hoping that their parents or grandparents will contribute to the cost of raising their child/children

29. In the South West over 84% expect their parents or grandparents to help with childcare. This is followed by 28% who would like help with schooling, 40% with university fees and 24% with their child’s first home

30. When asked how much approximately it costs to raise a child (up to 18 years of age and before education fees) the average was £127,429.12

31. 45% of respondents in the South West have you cut back on their working hours in the last five years due to the cost of childcare

32. Overall, 28% have reduced their working hours by one day per week due to the cost of childcare in the last five years, with a further 53% having cut down by two days per week

33. 31% believe the costs of childcare in the South West have increased significantly over the last two years.

Wales

The 30 hours of free childcare scheme is currently being piloted in Wales, which will then be rolled out more widely at a later stage. Currently, three- and four-year olds
can get 10 hours of free early education for 38 weeks a year.

1. In Wales, 44% of respondents send their children to nursery with 13% choosing a childminder to care for their child/children. To fit in with their working arrangements, 10% of parents used a combination of nursery and childminder, whilst 33% didn’t use either

2. For those that use nursery for childcare, 92% said it was a very important service

3. Of the respondents who use a childminder, 87% felt it was a very important service

4. In Wales, 69% of those polled stated that family was a very important childcare service. Whereas, 29% cited after school clubs as a very important service

5. On average, parents in Wales spend £111 in total on nursery fees and/or childminder fees per week per child, in pounds 6. 23% are currently using the Government’s allowance of 10 hours of free childcare for three- and four-year-olds

7. When asked why respondents were not currently using the Government’s allowance of 10 hours free childcare for three- and four-year-olds, the answers in Wales were as follows:

8. In Wales, 56% of respondents get help with childcare from their extended family members and 6% receive help from friends. A further 17% get help from both family and friends

9. For over 100% of the Welsh respondents, grandparents help with childcare. Aunts and uncles also play a big role in childcare with 33% of respondents saying they help and 6% of cousins help too

10. Family and friends in Wales help as follows:

11. 37% currently use Childcare Vouchers provided as a benefit by their employer

12. 57% have not yet heard about the new Tax-Free Childcare Scheme that started in 2017

13. Of those that have heard about the Tax-Free Childcare Scheme, 13% have already signed up to it whilst 23% are planning to. However, 10% are not sure yet and 53% have said that they will not be participating

14. Of those that have used the Tax-Free Childcare Scheme so far, 50% cited it as a very good service, despite the problems it had at launch

15. 44% stated that they would not be participating in the Tax-Free Childcare Scheme because they are happy with the Childcare Voucher Scheme and/or 10 hours of free childcare. 6% found the application process too confusing

16. When asked what respondents would do with any extra savings they would make through the Government’s childcare help schemes, the answers were as follows:

17. The average amount that respondents thought they could save per child/per year with the savings made available via the Tax-Free Childcare Scheme and/or 10 hours free childcare scheme was £1,308.13

18. In Wales on average, respondents saved 13% of their household income per month

19. Respondents living in Wales allocated their household income savings each month in the following ways:

20. On average 10% of the Welsh respondents’ savings and/or investments are for their child/children’s future

21. Only 1% are planning to send their child/ children to private school

22. Of those that responded positively, 100% have already started saving for their child/children’s private school education

23. 81% aspire for their children to attend university

24. 50% stated that the high cost of childcare is putting them off from having more children

25. On average, for those parents who are planning to have another child, they intend to wait almost three years

26. 26% of those polled in Wales are hoping that their parents or grandparents will contribute to the cost of raising their child/children

27. In Wales, over 72% expect their parents or grandparents to help with childcare. This is followed by 22% who would like help with schooling, 44% with university fees and 22% with their child’s first home

28. When asked how much approximately it costs to raise a child (up to 18 years of age and before education fees) the average was £135,109.28

29. 40% of Welsh respondents have cut back on their working hours in the last five years due to the cost of childcare

30. Overall, 43% have reduced their working hours by one day per week due to the cost of childcare in the last five years, with 5% having cut down by two days per week

31. 34% believe the costs of childcare in Wales have increased significantly over the last two years.

Northern Ireland

Children are entitled to at least 12.5 hours of free preschool education a week for 38 weeks in the year before they start school. There are currently no plans to extend the 30 hours free childcare to Northern Ireland as childcare matters are devolved.

1. In Northern Ireland, 41% of respondents send their children to nursery with 20% choosing a childminder to care for their child/children. To fit in with their working arrangements, 10% of parents used a combination of nursery and childminder, whilst 29% didn’t use either

2. Of the respondents who use a childminder, 73% felt it was a very important service

3. For those that use nursery for childcare, 84% said it was a very important service

4. In Northern Ireland, 59% of those polled stated that family was a very important childcare service and this was amongst the highest amount nationally. Whereas, 45% cited after school clubs as a very important service

5. On average, parents in Northern Ireland spend £117 in total on nursery fees and/or childminder fees per week per child, in pounds

6. Only 4% are currently using the Government’s allowance of 12.5 hours of free childcare for three- and four-year-olds

7. When asked why respondents were not currently using the Government’s allowance of 12.5 hours free childcare for three- and four-year-olds, the answers in Northern Ireland were as follows:

8. In Northern Ireland, over 61% of respondents get help with childcare from their extended family members and 6% receive help from friends. A further 12% get help from both family and friends

9. For over 86% of respondents in Northern Ireland, grandparents help with childcare and even 8% get help from their great-grandparents. Aunts and uncles also play a big role in childcare with 42% of respondents saying they help with 8% additionally receiving help from cousins

10. Family and friends in Northern Ireland help as follows:

11. 31% currently use Childcare Vouchers provided as a benefit by their employer

12. 63% have not heard about the new Tax-Free Childcare Scheme that started in 2017

13. Of those that have heard about the Tax-Free Childcare Scheme, just 6% have already signed up to it whilst just 17% are planning to. Another 17% are not sure yet and over 60% have said that they will not be participating

14. In Northern Ireland the Tax-Free Childcare Scheme had an average rating of 5 (very bad)

15. 27% stated that they would not be participating in the Tax-Free Childcare Scheme because they are happy with the Childcare Voucher Scheme and/or 12.5 hours of free childcare

16. When asked what respondents would do with any extra savings they would make through the Government’s childcare help schemes, the answers were as follows:

17. The average amount that respondents thought they could save per child/per year with the savings made available via the Tax-Free Childcare Scheme and/or 12.5 hours free childcare scheme was £1,105.32

18. In Northern Ireland on average, respondents saved 11% of their household income per month

19. Respondents living in Northern Ireland allocated their household income savings each month in the following ways:

20. On average 11% of respondents in Northern Ireland’s savings and/or investments are for their child/children’s future

21. 4% are planning to send their child/ children to private school and 16% are still undecided

22. Of those that responded positively, 50% have already started saving for their child/children’s private school education

23. 67% aspire for their children to attend university

24. 43% stated that the high cost of childcare is putting them off from having more children

25. On average, for those parents who are planning to have another child, they intend to wait almost two years

26. Just 10% of those polled in Northern Ireland are hoping that their parents or grandparents will contribute to the cost of raising their child/children. This was the lowest figure in the UK

27. In Northern Ireland 60% expect their parents or grandparents to help with childcare. This is followed by 40% who would like help with schooling, 20% with university fees and 20% with their child’s first home

28. When asked how much approximately it costs to raise a child (up to 18 years of age and before education fees) the average was £ 132,692.88

29. 33% of those polled in Northern Ireland have cut back on their working hours in the last five years due to the cost of childcare

30. Overall, 50% have reduced their working hours by one day per week due to the cost of childcare in the last five years, with a further 25% having cut down two days per week

31. 43% believe the costs of childcare in Northern Ireland have increased significantly over the last two years.

Scotland

A pilot scheme to almost double the 16 hours of free childcare per week for 3 and 4 year olds is being trialed. This will then be rolled out more widely before 2020.

1. In Scotland 45% of respondents send their children to nursery with just 11% choosing a childminder to care for their child/children. To fit in with their working arrangements, 17% of parents used a combination of nursery and childminder, whilst 27% didn’t use either

2. Of the respondents who use a childminder, 85% felt it was a very important service

3. For those that use nursery for childcare, 89% said it was a very important service

4. Interestingly in Scotland, 70% of those polled stated that family was a very important childcare service. Whereas, just 27% cited after school clubs as a very important service and this was the lowest figure nationally

5. On average, parents in Scotland spend £97 in total on nursery fees and/or childminder fees per week per child, in pounds. This is amongst the lowest
figures nationally

6. 35% are currently using the Government’s allowance of 16 hours of free childcare for three- and four-year-olds

7. When asked why respondents were not currently using the Government’s allowance of 16 hours free childcare for three- and four-year-olds, the answers in Scotland were as follows:

8. In Scotland, 62% of respondents get help with childcare from their extended family members and 6% receive help from friends. A further 18% get help from
both family and friends

9. For over 90% of those polled in Scotland, grandparents help with childcare and 4% get help from great-grandparents. Aunts and uncles play a big role in childcare with 45% of respondents saying they help and 8% receive help from cousins

10. Family and friends in Scotland help as follows:

11. 32% currently use Childcare Vouchers provided as a benefit by their employer

12. Over 53% have not yet heard about the new Tax-Free Childcare Scheme that started in 2017

13. Of those that have heard about the Tax-Free Childcare Scheme, only 17% have already signed up to it whilst 26% are planning to. However, 23% are not sure yet and 34% have said that they will not be participating

14. Of those that have used the Tax-Free Childcare Scheme so far, just 36% cited it as a very good service, despite the problems it had at launch

15. 55% stated that they would not be participating in the Tax-Free Childcare Scheme because they are happy with the Childcare Voucher Scheme and/or 16 hours of free childcare. 5% found the application process too confusing

16. When asked what respondents would do with any extra savings they would make through the Government’s childcare help schemes, the answers were
as follows:

17. The average amount that respondents thought they could save per child/per year with the savings made available via the Tax-Free Childcare Scheme and/or 16 hours free childcare scheme was £1,240.03

18. In Scotland on average, respondents saved 11% of their household income per month

19. Respondents living in Scotland allocated their household income savings each month in the following ways:

20. On average 10% of Scottish parents’ savings and/or investments are for their child/children’s future6% are planning to send their child/ children to private school and just 12% are still undecided

21. Of those that responded positively, 100% have already started saving for their child/children’s private school education

22. 85% aspire for their children to attend university

23. 42% stated that the high cost of childcare is putting them off from having more children

24. On average, for those parents who are planning to have another child, they intend to wait almost three years

25. Just 14% of those polled in Scotland are hoping that their parents or grandparents will contribute to the cost of raising their child/children

26. In Scotland 65% expect their parents or grandparents to help with childcare. This is followed by 30% who would like help with schooling, 30% with university fees and 20% with their child’s first home

27. When asked how much approximately it costs to raise a child (up to 18 years of age and before education fees) the average was £129,000.54

28. 40% of those polled in Scotland have cut back on their working hours in the last five years due to the cost of childcare

29. Overall, 35% have reduced their working hours by one day per week due to the cost of childcare in the last five years, with a further 38% having cut down two days per week

30. Just 32% believe the costs of childcare in Scotland have increased significantly over the last two years

West Midlands

1. In the West Midlands, 49% of respondents send their children to nursery with 9% choosing a childminder to care for their child/children. To fit in with their working arrangements, 11% of parents used a combination of nursery and childminder, whilst 31% didn’t use either

2. Of the respondents who use a childminder, 74% felt it was a very important service

3. For those that use nursery for childcare, 89% said it was a very important service

4. Interestingly in the West Midlands, 68% of those polled stated that family was a very important childcare service. 37% cited after school clubs as a very important service

5. On average, parents in the West Midlands spend £117 in total on nursery fees and/or childminder fees per week per child, in pounds

6. 28% are currently using the Government’s allowance of 15 hours of free childcare for three- and four-year-olds

7. Of that group, 76% are planning to take advantage of the extra 15 hours, totaling 30 hours, of free childcare introduced in September 2017

8. When asked why respondents were not currently using the Government’s allowance of 15 hours free childcare for three- and four-year-olds, the answers in the west Midlands were as follows:

9. 89% said their local nursery can provide the extra 15 hours of free childcare

10. In the West Midlands, over 59% of respondents get help with childcare from their extended family members and 2% receive help from friends. 19% get help from both family and friends

11. For over 98% of those polled in the West Midlands, grandparents help with childcare but only 8% get help from their great-grandparents. Aunts and uncles play a big role in childcare with 34% of respondents saying they help with 7% additionally receiving help from cousins

12. Family and friends in the West Midlands help as follows:

13. 37% are currently using Childcare Vouchers provided as a benefit by their employer

14. Over 51% have not yet heard about the new Tax-Free Childcare Scheme that started in 2017

15. Of those that have heard about the Tax-Free Childcare Scheme, just 15% have already signed up to it whilst just 24% are planning to. 17% are not sure yet and 44% have said that they will not be participating

16. Of those that have used the Tax-Free Childcare Scheme so far, 33% cited it as a very good service, despite the problems it had at launch 17. 67% stated that they would not be participating in the Tax-Free Childcare Scheme because they are happy with the Childcare Voucher Scheme and/or 30 hours of free childcare. 8% found the application process too confusing

18. When asked what respondents would do with any extra savings they would make through the Government’s childcare help schemes, the answers were as follows:

19. The average amount that respondents thought they could save per child/per year with the savings made available via the tax-free childcare and/or 30 hours
free childcare scheme was £1,833.02

20. In the West Midlands on average, respondents saved 12% of their household income per month

21. Respondents living in the West Midlands allocated their household income savings each month in the following ways:

22. On average 10% of respondents in the West Midlands savings’ and/or investments’ are for their child/children’s future

23. 11% are planning to send their child/ children to private school and 14% are still undecided

24. Of those that responded positively, 83% have already started saving for their child/children’s private school education

25. 75% aspire for their children to attend university

26. 46% stated that the high cost of childcare is putting them off from having more children

27. On average, for those parents who are planning to have another child, they intend to wait over two years

28. 19% of those polled in West Midlands are hoping that their parents or grandparents will contribute to the cost of raising their child/children

29. In the West Midlands over 84% expect their parents or grandparents to help with childcare. This is followed by 37% who would like help with schooling, 37% with university fees and 28% with their child’s first home

30. When asked how much approximately it costs to raise a child (up to 18 years of age and before education fees) the average was £127,372.81

31. 50% of people in the West Midlands have cut back on their working hours in the last five years due to the cost of childcare

32. Overall, 29% have reduced their working hours by one day per week due to the cost of childcare in the last five years, with 43% having cut down by two days per week

33. 39% believe the costs of childcare in the West Midlands have increased significantly over the last two years.

Yorkshire and the Humber

1. 42% of respondents send their children to nursery with 25% choosing a childminder to care for their child/children. To fit in with their working arrangements, 9% of parents used a combination of nursery and childminder, whilst 23% didn’t use either

2. Of the respondents who use a childminder, 93% felt it was a very important service

3. For those that use nursery for childcare, 86% said it was a very important service

4. 56% of stated that family was a very important childcare service. Whereas, 35% cited after school clubs as a very important service

5. On average, parents spend £102 in total on nursery fees and/or childminder fees per week per child, in pounds

6. Only 28% are currently using the Government’s allowance of 15 hours of free childcare for three- and four-year-olds

7. Of that group, 89% are taking advantage of the extra 15 hours, totaling 30 hours, of free childcare introduced in September 2017

8. When asked why respondents were not currently using the Government’s allowance of 15 hours free childcare for three- and four-year-olds, answers were as follows:

9. 82% said their local nursery can provide the extra 15 hours of free childcare

10. 56% of respondents get help with childcare from their extended family members and 4% receive help from friends. A further 16% get help from both family and friends

11. For over 95%, grandparents help with childcare and even 9% get help from great-grandparents Aunts and uncles also play a big role in childcare with 31% of respondents saying they help

12. Family and friends help as follows:

13. 45% currently use Childcare Vouchers provided as a benefit by their employer

14. Over 63% have heard about the new Tax-Free Childcare Scheme that started
in 2017

15. 37% have not heard about the Tax-Free Childcare Scheme, 13% have already signed up to it whilst 28% are planning to. However, 16% are not sure yet and
43% have said that they will not be participating

16. Of those that have used the Tax-Free Childcare Scheme so far, just 23% cited it as a very good service, despite the problems it had at launch

17. 74% stated that they would not be participating in the Tax-Free Childcare Scheme because they are happy with the Childcare Voucher Scheme and/or 30 hours of free childcare

18. When asked what respondents would do with any extra savings they would make through the Government’s childcare help schemes, the answers were as follows:

19. The average amount that respondents thought they could save per child/per year with the savings made available via the tax-free childcare and/or 30 hours
free childcare scheme was £1,710.79

20. In Yorkshire and the Humber on average, respondents saved 12% of their household income per month

21. Respondents living in this area allocated their household income savings each month in the following ways:

22. In Yorkshire and the Humber on average 11% of savings and/or investments by parents are for the future of their child/children

23. Just 6% are planning to send their child/ children to private school and 15% are still undecided.

24. Of those that responded positively, 89% have already started saving for their child/children’s private school education

25. 77% aspire for their children to attend university

26. 41% stated that the high cost of childcare is putting them off from having more children

27. On average, for those parents who are planning to have another child, they intend to wait over two years

28. 15% of those polled in Yorkshire and the Humber are hoping that their parents or grandparents will contribute to the cost of raising their child/children

29. In Yorkshire and the Humber 83% expect their parents or grandparents to help with childcare. This is followed by 26% who would like help with schooling, 22% with university fees and 13% with their child’s first home

30. When asked how much approximately it costs to raise a child (up to 18 years of age and before education fees) the average was £ 137,031.86

31. Despite the figure above, 42% have cut back on their working hours in the last five years due to the cost of childcare. This figure is high compared to other regions

32. Overall, 34% have reduced their working hours by one day per week due to the cost of childcare in the last five years, with a further 43% having cut down by two days per week

33. 37% of respondents in Yorkshire and the Humber believe the costs of childcare have increased significantly over the last two years.

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To find out more about the Real Cost of Childcare report please contact us at [email protected] 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
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