Weekly childcare costing some parents more than half of their take-home pay, new analysis shows - Business in the Community

Weekly childcare costing some parents more than half of their take-home pay, new analysis shows

New analysis by Business in the Community (BITC), The Prince’s Responsible Business Network, has found that in England, Scotland and Wales, full-time nursery for children under the age of two is costing some parents more than half of one person’s weekly take-home pay. [1] In an analysis using Coram Family and Childcare survey results alongside ONS income data, BITC found that:

  • In England, the median weekly take-home pay of a working-age adult is £418. Nursery for a child under two years old costs £274 per week, which is 65% of one parent’s weekly median take-home pay. For a child aged between five and 11, an afterschool childminder costs £71 a week or 17% of one parent’s weekly median take-home pay.
  • In Scotland, the median weekly take-home pay of a working-age adult is also £418. However, nursery for a child under two years old costs £213, which is 51% of one parent’s weekly median take-home pay, and a childminder for a child aged between five and 11 is £73 per week, which amounts to 17% of weekly median take-home pay.
  • In Wales, the median weekly take-home pay of a working-age adult is £390. Nursery for a child under two years old costs £247 but is 63% of one parent’s weekly median take-home pay, and a childminder for a child aged between five and 11 is £73 per week or 19% of weekly median take-home pay.

BITC’s work in communities covers many areas including understanding and addressing the barriers that are stopping people from gaining employment. BITC currently works in a number of areas including Rochdale, Bradford, Coventry, Norwich, Sheffield, Newport and Blackpool.

In these areas, the cost of childcare is equally as high. For example, the median weekly take-home pay in Rochdale is £374. For working parents in Rochdale, it costs £238 per week to send one child under two to nursery full-time, which works out as 64% of one parent’s weekly take-home pay. Across other areas, the cost to send one child under two to nursery full-time when compared to median take-home pay equates to:

  • In Bradford, the median weekly take-home pay is £386, with full-time nursery costing £242 a week or 63% of one parent’s weekly take-home pay,
  • In Coventry, the median weekly take-home pay is £412, with full-time nursery costing £267 a week or 65% of one parent’s take-home pay.
  • In Sheffield, the median weekly take-home pay is £404, with full-time nursery costing £242 a week or 60% of one parent’s weekly take-home pay.
  • In Newport, the median weekly take-home pay is £396, with full-time nursery costing £247 a week or 62% of one parent’s weekly take-home pay.
  • In Blackpool, the median weekly take-home pay is £344, with full-time nursery costing £238 a week or 69% of one parent’s weekly take-home pay.
  • In Norwich, the median weekly take-home pay is £408, with full-time nursery costing £304 a week or 74% of one parent’s weekly take-home pay.

Earlier this year, BITC research conducted by Ipsos, found that nearly six out of ten women (58%) say caring responsibilities have stopped them applying for promotion or a new job, and one in five (19%) have left a job because it was too hard to balance work and care. The research also found that one in three (32%) Black, Asian, Mixed Race and other ethnically diverse people have left or considered leaving a job due to a lack of flexibility compared with one in five (21%) white people. [3]

Katy Neep, Gender Director at Business in the Community, said:

“The percentage of take-home pay spent on childcare should be a wake-up call. While most families do receive some financial support from government, everyone’s situation is different, and some parents may have to fork out half their weekly pay just so that they can go to work. Childcare costs on top of rising household bills are putting working parents, particularly women in a very difficult position. Many working women are having to decide whether working is even worth it when they look at what’s left in their bank accounts after paying for childcare.

“It is a sad but startling fact that women are being priced out of employment with reports showing that the number of women not working to look after family has risen 5 per cent in the past year. This is a crisis of access and affordability. Employers must look at pay as well as challenging their preconceptions about where, when and how work is done. Employers need to transform the way they think about combining paid work and care and ensure that women are not leaving the workplace or passing up a promotion because it is all too hard to balance.”  [3]

Ends

Notes to editor

  1. The data analysed is from Coram and Family Childcare’s 2022 Childcare Survey). A single parent’s median annual salary, or take-home pay before taxes was taken from Earnings and hours worked, all employees: ASHE Table 8.7 and the UK Gov’s estimate your Income tax for the current year calculator. Take-home pay excludes any tax credits or pension contributions.
  2. Full details of the analysis are available upon request.
  3. https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/economicinactivity/datasets/economicinactivitybyreasonseasonallyadjustedinac01sa
  4. Ipsos UK carried out a survey in collaboration with Business in the Community to understand people’s attitudes and experiences of balancing work and care. The survey was carried out with a representative sample of 5,444 adults aged 16 and over from across the United Kingdom. This includes 2,725 women and 2,608 men. Of the total sample, 2,991 adults aged 16 over were working full-time or part-time and 1,837 people had at least one caring responsibility for children or adults. The fieldwork took place between 11-17 November 2021.


For further information, please contact Aoife Butler Nolan, Head of Media, Public Affairs and Policy, on 07702 903 216.

About Business in the Community 

Business in the Community (BITC) and our network of business members are leading a movement to create a fair and sustainable world in which to live in work. Formed in 1982, and with His Majesty King Charles III as our Royal Founding Patron, we are the largest and longest-established membership organisation dedicated to responsible business. We work and campaign with more than 600 members to continually grow their responsible business practices, uniting our efforts for greater social and environmental impact in our communities.