Although childcare costs in the UK are already among the highest in the world, they are expected to increase this year.

Although childcare costs in the UK are already among the highest in the world, they are predicted to increase this year, increasing pressure on the government to assist families in the nation.

According to a poll by the educational charity the Early Years Alliance, 89% of childcare providers in England who haven't already increased costs in 2023 intend to do so throughout the year by an average of 8%.

About seven out of ten providers are also thinking about adding or raising extra fees for parents, such as those for meals and outings.

As shown by statistics from the children's charity Coram, a full-time nursery spot in England costs roughly £14,000 per year. A boost of 8% would be equivalent to an increase of about £1,000 per year.

According to Neil Leitch, CEO of the Early Years Alliance, "Nurseries, pre-schools, and childminders are being given an unsustainable choice: drastically increase costs for parents and carers or go out of business completely." If the government does not act quickly, the issue will only become worse.

Based on the most recent research by the non-profit organisation Business in the Community, the average cost of a nursery spot for a child under the age of two is close to two thirds of one parent's weekly take-home income, making the UK the country with the costliest childcare in the OECD (Organisation for Economic Co-operation and Development).

The administration is under pressure to make significant changes to sector-specific policy as a result of mounting public resentment and pressure from the opposition Labour Party. More than a third of pre-schools, nurseries, and childminders believe they will likely close in the coming year as inflation eats away at their budgets, and providers are requesting fairer financing from the government.

The majority of childcare providers said the government doesn't provide enough money to cover their costs as found by the Early Years Alliance survey. Despite the fact that the government offers a variety of subsidies, including free hours of child care to the majority of parents of children aged 3 and 4.

More than 1,000 providers participated in the survey, which received responses in January of this year, and 50% of them reported operating at a loss in 2022.

(Bloomberg.com, Coram.org.uk, Eyalliance.org.uk)