Research has shown that the cost of childcare in the UK more than doubles during school holidays. This leaves many parents in an extremely difficult position as they struggle to cope financially. Read on to find out more about the statistics and how employers might help with childcare costs for working parents.
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The Impact of Increased Childcare Costs During School Holidays
According to research conducted by Coram Group, holiday childcare costs have increased by 6% on average across the country. The average cost of childcare in the UK now stands at £175 per week during school holidays. This figure rises to £209 in Wales and £216 in the south-east of England. Surprisingly, the figure for inner London currently stands at £153 per week.
This means that, on average, families will pay £1,049 per child for six weeks of childcare this summer. This is £635 more than they would pay for six weeks of childcare during term-time. The research also shows a worrying level of childcare availability across the country. For parents working full-time, the availability of childcare stands at only 17%, a decrease of 7% from last year.
Read: Top 3 Ways Employers Can Support Working Parents
Whilst the government has implemented significant improvements to childcare funding this year, these only apply during term-time. As such, working parents are left struggling to cover daycare costs during school holidays. Coram Group is campaigning to extend the childcare funding available to also cover school holidays. It is hoped that this will help with childcare costs for working parents by also assisting with holiday childcare.
Ellen Broome, Coram’s managing director, has highlighted the issues with the current cost of holiday childcare. She stated: “Many families dread onset of the summer holidays. Rather than a time for families to rest, play and have fun together, many parents worry about how to pay for holiday childcare during the long summer break.”
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How Can Employers Help with Childcare Costs for Working Parents?
Unfortunately, since the introduction of government provided tax-free childcare, offering childcare vouchers via salary sacrifice is no longer an option for employers. However, there are other ways in which employers can provide financial help with childcare costs for working parents.
Workplace nursery schemes are one option for employers to consider. Providing access to a local childcare facility would save many working parents a great deal of time and stress. Such schemes can be set up either directly or via a third party. Employees pay for the use of such schemes via salary sacrifice, thus also saving on tax expenses while meeting daycare costs.
Implementing flexible allowances can also help with childcare costs for working parents. In effect, employees can choose to spend their flexible allowance on whatever they like. However, for working parents, this could make all the difference when struggling to meet childcare costs during school holidays.
Helping with the cost of subscriptions for various parenting apps may be another option for employers to consider. Such apps can range from parental support to activity ideas and childcare access. Many parents find these extremely useful but sometimes too expensive, which is where employers can assist.
Often, working parents will find themselves understandably overwhelmed when it comes to managing their finances, particularly given the increasing cost of childcare in the UK. Employers might wish to consider providing advice and support with respect to money management. From signposting working parents to external sources of support to setting up internal groups, working parents will be grateful to know they are not struggling alone.
How Else Can Employers Help to Support Working Parents?
According to research conducted by Phoenix Group, 64% of working adults feel that flexible working would help with childcare funding. Unfortunately, 38% have also stated that they have been denied this option by their employers. Enabling employees to work flexibly – varying their working hours, times, and/or location – could make a huge difference to working parents over the school holidays.
Given the rise in childcare costs, many parents are faced with an impossible choice during school holidays. This comprises choosing between taking unpaid leave to care for their children or paying unaffordable daycare costs while they continue to work. Providing employees with the option to work flexibly would solve this problem, enabling parents to work whilst being present for their children.
Read: Gap Between Working Parents Needs and Employer Support Continues to Grow
Head of public engagement and campaigns at Phoenix Insights, Catherine Sermon, is highly supportive of this approach. She has spoken of the positive impact which flexible working can have on working parents. She stated: “Flexible working arrangements can be powerful in enabling working parents to effectively manage their childcare responsibilities during the summer.”
Enabling parents to work flexibly during school holidays can be beneficial to employers as well as employees. Assisting with childcare concerns can greatly reduce stress, enhancing employee wellbeing and increasing productivity as a result.
Moreover, the Phoenix Group’s research shows that 41% of employees who work flexibly state that they would leave their jobs if this option was not available. Offering flexible working is, therefore, likely to increase staff retention and serve to attract more talent going forward.
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