A new report shows 46% of parents with children under five are borrowing money or using savings to manage childcare costs, highlighting a crisis exacerbated by the exclusion of student nurses and midwives from the government’s free childcare scheme.
Recent surveys and reports have highlighted the growing financial strain on parents in England due to the skyrocketing costs of childcare, with a significant number resorting to using savings or incurring debt. Research conducted by the campaign group Pregnant Then Screwed, in collaboration with Women In Data, revealed that 46% of parents with children under five have borrowed money or used savings to cover childcare expenses, a 30% increase from the previous year. This situation is particularly dire for single parents, two-thirds of whom are facing debt to manage childcare costs.
The high cost of childcare is consuming a substantial portion of household incomes, with around half of the parents spending over a quarter of their income on childcare, and nearly 20% spending more than half. These escalating costs are not only causing financial distress but are also raising concerns about the impact on the economy and the workforce, especially on mothers who might face additional barriers to remaining in or returning to work.
In response to these challenges, Chancellor Jeremy Hunt announced plans to offer 30 hours of free childcare per week for children under five from September 2025, aiming to alleviate some financial burden from working parents. Nonetheless, questions about the scheme’s implementation, including funding rates for nurseries and the availability of childcare places, remain a concern.
Compounding these issues, thousands of student nurses and midwives are struggling with accessing childcare, with many considering abandoning their courses due to the exclusion from the government’s free childcare scheme. This exclusion is exacerbating an ongoing crisis in the education and healthcare sectors, with a notable decline in applications for nursing degree courses and a significant number of unfilled vacancies within the NHS.
Campaign groups like Mumsnet and Save the Children are urging the government to extend free childcare support to all parents in training, including trainee teachers, nurses, and midwives, to prevent students from dropping out and to address the shortage of healthcare professionals.
The situation underscores the urgent need for comprehensive solutions to make childcare more affordable and accessible, thereby supporting parents, trainee professionals, and ultimately the broader economy and public services.
