Families spend a third of their income on childcare - UK most expensive in the world
There are lots of great things about living in the UK… roast dinners, afternoon tea and our polite and friendly attitude. However, it seems that our childcare costs are letting the side down! It has been revealed that we have the most expensive childcare in the world, according to a study by the Organisation for Economic Cooperation and Development (OECD).
A full-time nursery place for a child under two costs an eye-watering £222 a week, meaning working families are now spending £11,300 a year on average on childcare. This increases to £15,700 in London (gulp!).
Shockingly, this is more than three times the cost of childcare in France and Germany, with parents in the UK spending more than a third of their income on nurseries and childminders.
It is probably no surprise that childcare costs tend to be higher in English-speaking countries, with European countries falling lower on the list as they provide much more funding for childcare to allow mothers to continue to work.
There are plans to increase the amount of free childcare in the UK to 30 hours a week for children aged three and four in 2017. But this is dependant on family income levels and there is still no extra help for families who have children under three.
When you have young children, this is potentially the time in your life where your money is stretched to its absolute maximum. As boring as it may be, it is a time where you need to keep a close eye on your finances and doing a monthly or weekly budget can help.
We have just launched our new budget planner which is free to use and aims to help you track your finances closely. We also give you a savings idea so you can start building up a rainy day fund or start saving for that family holiday.
Try our Budget Planner!