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Hybrid workingLatest NewsFlexible workingLabour market

School holiday childcare costs parents extra £1700

by Rob Moss 12 Aug 2024
by Rob Moss 12 Aug 2024 Childcare and children's activities during school holidays cost households an additional £1,683 per month.
Matimix/Shutterstock
Childcare and children's activities during school holidays cost households an additional £1,683 per month.
Matimix/Shutterstock

Two-fifths of working parents see childcare costs during the school holidays increase by almost £1,700 per month compared to term time, according to research.

A survey of 2,000 UK adults by Phoenix Group, the savings and retirement business, found that the average monthly cost of childcare and children’s activities is £1,683 higher in the holidays than it is during school time, representing 51% of the average UK monthly household income.

Younger parents aged 18-34 face even higher bills, with an average increase in childcare costs of £2,218 per month.

Childcare costs

Childcare costs rocket by £200 per week, claims research 

Childcare costs prevent mothers from working

One in three preschool parents spend a third of wages

A lack of flexible working arrangements – such as the ability to work flexible hours, in different locations or part-time working – exacerbates costs and prevents some parents from staying in work.

Two-thirds of UK adults (64%) say they would like the option to work more flexibly during school holidays to save money on childcare. But the research found that 38% have been denied flexible working over the holidays and 39% feel they cannot work because they are unable to find a job that lets them juggle childcare.

Catherine Sermon, head of public engagement and campaigns at the group’s think-tank Phoenix Insights, said: “Flexible working arrangements can be powerful in enabling working parents to effectively manage their childcare responsibilities during the summer.

“In recent years, there has been a re-evaluation of working practices and an increase in the adoption of flexible working across the UK, with managers and employees being better equipped to talk about flexible working.

“However, as childcare costs rise sharply during the summer holidays, parents face financial pressures that may push them to choose between working or caring for their children.

“Ensuring that all those who wish to work can is critical in tackling the under-saving crisis across the UK as extended time out of the workforce exacerbates pension shortfalls and leaves millions vulnerable to financial hardship. This is especially true for women, who are particularly vulnerable to leaving the workforce due to caring commitments.”

Forty-one per cent of those surveyed who could work flexibly said they would quit if this option were no longer available. More than half (55%) said they would benefit from the ability to work remotely over the school holidays but do not have the option.

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Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

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