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News - 14 January 2014

Childcare costs rose by 19% in 2013.

Using data from's annual report collected from 231,000 nannies, childminders and other professionals, the average cost of childcare rose by 19% in the year to December 2013.

The cost of nannies showed the biggest increase - from an average of £6.59 an hour in 2012 to £8.73 last year - a rise of 25%.

Its chief executive, Tom Harrow, says paying for childcare is becoming "incrementally harder for parents each year".

He believes the rise is a consequence of an increase in demand for childcare, while the supply is remaining broadly static.

Lavinia Newman, founder of ABDS comments:
“The figures take no account of the free nursery places that the government funds for three and four-year-olds along with some of the most needy two-year-olds.”

Liz Bayram, of the Professional Association for Childcare and Early Years, says she doubts overall childcare costs have risen by as much as 19%, but that cost pressures on carers, such as higher energy and food prices, are having an impact.

Labour says that the rising cost of childcare is harming the economy.

The shadow children's minister, Lucy Powell, says childcare costs "lock parents who want to get back to work out of the jobs market".

In addition to collating raw data from their members, also surveyed 1,000 users of their site to find out how they felt about childcare issues. Their omnibus survey of 1,000 parents of at least one child aged under 10 was conducted between the 4 and 8 November 2013. They found that almost a quarter of the unemployed parents they surveyed would like to work, but are stopped from doing so by childcare costs.

The survey also suggests that parents are more supportive of government policies the more children they have. Only 17% of parents of one child thought the government was "doing enough", with the figure rising to 37% for parents of three children.

  • If you need any help and advice on Nursery Schools and or starting up a new business contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar to discuss how ABDS can help

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail:

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