Surge in parents racking up debt to fund childcare: ‘Procreation is financial suicide’

surge in parents racking up debt to fund childcare: ‘procreation is financial suicide’

Childcare costs

Increasing numbers of parents are racking up debt to fund childcare costs, according to damning new research.

A study, by Pregnant Then Screwed and Women In Data, found 46 per cent of parents in England with a child under five say they accumulated debt or were forced to dip into their savings to pay for childcare – a 30 per cent surge from last year.

Researchers also discovered that around one in five parents with a child under the age of five was pushed into taking money out of their savings and pension to foot their childcare costs.

And around one in four say they were forced to resort to using credit cards, taking out a loan or borrowing money from relatives or friends.

The situation is far more stark for single parents with a child under five, according to the survey, with two-thirds racking up debt to fund childcare.

Joeli Brearley, chief executive and founder of Pregnant Then Screwed, said: “We have not only got a cost of living crisis, we have got a cost of working crisis that disproportionately impacts mothers.’’

Her comments come after chancellor Jeremy Hunt revealed a major extension to free childcare for parents in the spring of last year to win back voters, with working parents who have children under five told they can claim 30 hours of free childcare for 38 weeks per year from September 2025.

But The Independent recently revealed that thousands of nurseries have shut their doors amid a staffing crisis, sparking fears the government’s promise to expand free childcare was “doomed to failure”.

The implementation of the government’s new free childcare provision has been tricky, with many parents still waiting to find out if they can get a funded spot, Ms Brearley warned.

“Whilst many others are complaining that cost savings are minimal due to significant price increases for childcare costs outside of the funded hours,” she added. “It is clear that after years of disappointment, parents are struggling to believe the promise that things will get better.’’

Researchers polled 35,800 parents, using a nationally representative sample of 5,870 parents for the new report.

“Being a parent is tough enough, but when having more children means sacrificing your income, procreation feels like financial suicide,” Ms Brearley added. “If we aren’t careful, becoming a parent will be a luxury item, and the economy can’t afford to pay that price.”

The new research found around half of parents with a child under the age of five in England report being forced to fork out more than a quarter of their household income on childcare – a surge of 16 per cent since last year.

Meanwhile, a third of parents warn their childcare provider has a waiting list longer than nine months, while a meagre 13 per cent of parents say there are no problems with finding childcare spots close to them.

The Independent recently revealed warnings from experts that Mr Hunt’s Budget childcare pledge was fast unravelling amid “chaos” over funding arrangements. Some warned the sector has not been given enough cash or support to deliver the promise by April.

The Organisation for Economic Co-Operation and Development (OECD) found the UK had one of the most expensive childcare systems in the world.

A spokesperson for the Department of Education said: “Our average, funding rates for new entitlements are expected to be substantially higher than the hourly fees paid by parents last year, and we are already seeing providers looking to expand their placements across the country.

“We published funding rates in November, and are urging local authorities to confirm their rates by the end of the month.”

From news to politics, travel to sport, culture to climate – The Independent has a host of free newsletters to suit your interests. To find the stories you want to read, and more, in your inbox, click here.

News Related

OTHER NEWS

FA confident that Man Utd starlet will pick England over Ghana

Kobbie Mainoo made his first start for Man Utd at Everton (Photo: Getty) The Football Association are reportedly confident that Manchester United starlet Kobbie Mainoo will choose to represent England ... Read more »

World Darts Championship draw throws up tricky tests for big names

Michael Smith will begin the defence of his world title on the opening night (Picture: Getty Images) The 2024 World Darts Championship is less than three weeks away and the ... Read more »

Pioneering flight to use repurposed cooking oil to cross Atlantic

For the first time a long haul commercial aircraft is flying across the Atlantic using 100% sustainable aviation fuel (SAF). A long haul commercial flight is flying to the US ... Read more »

King meets world business and finance figures at Buckingham Palace

The King has met business and finance leaders from across the world at a Buckingham Palace reception to mark the conclusion of the UK’s Global Investment Summit. Charles was introduced ... Read more »

What Lou Holtz thinks of Ohio State's loss to Michigan: 'They aren't real happy'

After Ohio State’s 30-24 loss to Michigan Saturday, many college football fans were wondering where Lou Holtz was. In his postgame interview after the Buckeyes beat Notre Dame 17-14 in ... Read more »

Darius Slay wouldn't have minded being penalized on controversial no-call

Darius Slay wouldn’t have minded being penalized on controversial no-call No matter which team you were rooting for on Sunday, we can all agree that the officiating job performed by ... Read more »

Mac Jones discusses Patriots future after latest benching

New England Patriots quarterback Mac Jones (10) Quarterback Mac Jones remains committed to finding success with the New England Patriots even though his future is up in the air following ... Read more »
Top List in the World