Cost of childcare continues to rise
Many parents are finding that the cost of childcare is rising, in some cases costing more than their wages. Over the years the cost of childcare has climbed, this is due to many reasons, one being the rise in the national living wage and minimum wage, the shortfall in funding for nursery education funded places and the rise in business rates.
Providing high-quality childcare is not cheap for providers either, employing a highly qualified workforce costs. All childcare providers must follow statutory requirements set by Ofsted, e.g., ratios, therefore the more babies, the more staff, this then again causes a rise in the salary bill.
Finding the balance where providers are sustainable, recruiting new parents while retaining existing parents can often be difficult. Providers need to be sustainable to stay open, therefore the only option providers have is to increase fees.
With the introduction of the 30hrs free childcare scheme, many nurseries are going to suffer further financial difficulties, with the government failing to support providers it is again parents who are going to have to put their hands in their pockets and help these providers.
Many people could argue that children’s fees are all pocketed by the nursery when in fact this in not true, many childcare providers have massive overheads to pay straight out and often there is very little left to invest in the nursery.
We all know that families need childcare providers but providers need to increase fees to stay open.