It’s no secret that childcare costs are extortionate and coupled up with the cost of living crisis, parents are struggling to financially survive. In fact, nearly half of parents in England are facing childcare debts.
45.9% of parents with a child under the age of five-years-old say they have either had to tap into their savings to pay for childcare or have accrued debt, according to new research from Pregnant Then Screwed, in partnership with Women In Data®.
The data has been compiled after Pregnant Then Screwed surveyed 35,800 parents. The report found that 1 in 5 parents, 21.5%, with a child under the age of 5 was forced to withdraw money from their savings and pension to pay their childcare bill.
37.1% said they had to use their credit cards, take out a loan or borrow money from family or friends.
For single parents, the figures rose even more sharply. Of those with a child under five-years-old, almost two-thirds, 66.5%, accrue debt to pay for childcare, including 50% who borrow money, and 31.3% who withdraw money from their savings and pension pot to plug the gaps.
According to the same survey in 2023, it found that 35.2% of parents had to rely on some form of debt, or withdraw money from their savings to pay for childcare.
An eye-watering half of parents with a child under five years of age in England (53%) say they spend more than a quarter of their household income on childcare — the figure is up 16% from last year.
In addition to this, 1 in 5 parents (19.2%) say they spend more than half their household income on childcare.
In other devastating research, 52.5% of mothers who had an abortion either somewhat agree or absolutely agree with the statement “I believe that the cost of childcare was the primary reason for me to terminate a pregnancy”.
Joeli Brearley, CEO and Founder of Pregnant Then Screwed, said: “We’re running out of babies. The birth rate is in decline. But parents who want to have more children cannot afford to do so. Being a parent is tough enough, but when having more children means sacrificing your income, procreation feels like financial suicide. If we aren’t careful, becoming a parent will be a luxury item, and the economy can’t afford to pay that price.”
Childcare cost and availability issues have also had an impact on the number of mothers returning to work. A third (33.6%) of mothers in England are unable to return to work full-time, compared to just 11.9% of fathers.
Meanwhile, 20% of mothers in England are unable to take up a more senior role due to childcare costs and availability compared to 8.8% of fathers.
Brearley added: ‘’We’ve not only got a cost of living crisis, we’ve got a cost of working crisis that disproportionately impacts mothers.’’
The cost of childcare is also prohibiting parents from creating a bigger family, with 85% of parents agreeing with the statement - “I tend to view childcare costs as prohibitive of having more children.”
The Government has pledged a reduction in childcare costs starting 1st April, however, only 35% of parents in England agreed with the statement, “I think childcare costs will be less of an issue for my family in 2024 due to childcare schemes announced by the Government.”
90% of parents in England agreed with the statement, “I do not believe the Government’s promise that childcare costs will reduce.”
Brearly explained: “The government has promised parents that they will soon be able to access more affordable childcare, but this will only be successful if the scheme doesn’t bankrupt childcare providers.
“We’ve already seen that the roll out of the new funding has not been straightforward with many parents still waiting to hear if they will be able to secure a funded place, whilst many others are complaining that cost savings are minimal due to significant price increases for childcare costs outside of the funded hours. It is clear that after years of disappointment, parents are struggling to believe the promise that things will get better.’’
A spokesperson for Women In Data® said: “Collectively we need to close the gender gap and remove the challenges Women face to achieve equality of opportunities in the workplace and reduce burden of the unspoken ‘tax’ on mothers from additional unpaid labour as carers and in the home.”