Childcare Crisis: How the Cost of Care Keeps Parents Out of Work
For many UK parents, the decision to return to work after having a child isn’t just about career progression or personal fulfilment - it’s about affording the childcare needed to make working financially viable. As the cost of care continues to rise, more parents are forced to make the difficult choice between returning to work or staying at home, often resulting in lost income, stalled careers, and increased financial pressure on households.
The High Cost of Childcare in the UK
According to the Coram Family and Childcare Survey (2024), the average cost of full-time childcare (50 hours per week) for a child under two is a staggering £1,200 – £1,500 per month. That equates to £14,400 – £18,000 per year for just one child.
Part-time care (25 hours per week) still costs £600 – £750 per month, a significant chunk of most household budgets. In London and the South East, prices are often even higher, exacerbating the problem for families living in high-cost areas.
Childcare Costs vs Income: A Losing Battle
With the average UK take-home pay around £2,000 – £2,400 per month (ONS, 2024), many parents find that up to 75% of one person’s salary goes directly towards childcare.
Example:
One child in full-time care: £1,500/month
Parent earning £2,000/month take-home pay
Left with just £500/month, often not enough to justify working
For families with two children in care, the cost can double to £3,000+/month, often exceeding take-home pay altogether. This leaves many households relying on a single income or turning to family members for unpaid care, which isn’t always an option.
The Impact on Working Parents
The high cost of childcare has significant social and economic consequences:
1. Mothers Leaving the Workforce
A 2023 survey by Pregnant Then Screwed found that 43% of mothers had considered leaving work due to unaffordable childcare.
Many women reduce hours or leave work entirely, affecting their long-term career prospects and pensions.
2. Increased Gender Pay Gap
Unequal access to affordable childcare disproportionately affects mothers, widening the gender pay gap and leading to reduced lifetime earnings.
3. Economic Impact
The UK economy loses billions in potential productivity due to underemployment of parents.
According to the Centre for Progressive Policy (2022), if women’s participation in the workforce matched men’s, GDP could be boosted by £48 billion annually.
Government Support: Is It Enough?
Current Help Includes:
Tax-Free Childcare: Up to £2,000/year per child (25% off costs)
30 Free Hours: For 3–4-year-olds (term-time only, eligibility applies)
Universal Credit: Up to 85% childcare cost support for low-income families
However, many parents don’t qualify for support, especially middle-income households, and the "free" hours often don’t cover full care needs or additional costs like meals and activities.
In 2023, the government pledged to expand free childcare to younger children, but implementation timelines and capacity challenges mean families still face high costs in the near term.
The Case for Reform
Experts argue that childcare must be treated as critical infrastructure, not a private burden. Countries like Sweden and Norway heavily subsidise childcare, resulting in higher workforce participation and better outcomes for children and parents alike.
Final Thoughts
The UK’s childcare system is in crisis. For many parents, especially mothers, the cost of care makes returning to work financially impossible or barely worthwhile. Without meaningful reform, the cycle of lost income, reduced savings, and economic inequality will continue for countless families.
Addressing childcare affordability is not just a parental issue - it’s an economic imperative. Until then, parents will continue to be faced with impossible choices that affect their financial wellbeing now and in the future.
Sources:
Coram Family and Childcare Survey (2024)
Office for National Statistics (2024)
Pregnant Then Screwed (2023)
Centre for Progressive Policy (2022)
Gov.uk Tax-Free Childcare