Yahoo News How to cut childcare costs as parents set to pay weekly average of £157 during summer holidays
The school holidays are just over a week away for families in Scotland which means many parents will be starting to factor in the additional costs of childcare over the summer break. New research from Moneyboat indicates that childcare costs have risen higher than inflation in some areas across Great Britain.
Research by the money lender found that childcare costs have risen at almost double the rate of inflation between 2014 and 2023. The average cost of weekly childcare in Scotland 10 years ago was £103.52, however, fast forward to 2023 and most parents are paying over £53 more at £157.22 per week - an eye-watering increase of 52 per cent.
Costs are expected to rise steadily at the same annual rate over the next six years with the research suggesting that Scots families will be forking out £217.60 each week for childcare by 2030.
Childcare summer holiday costs across Great Britain
Nation | 2023 Average Weekly Cost | 2030 Estimated Weekly Cost |
Scotland | £157 | £217 |
England | £156 | £223 |
Wales | £168 | £357 |
Commenting on the research, Parenting Coach Isobel Mary Champion, said: “There are so many summer camps and activity clubs available these days - the choices are mind boggling. Coding camps, robotics camps, maths camps, sports camps, performing arts camps, craft camps - there is a big trend and thriving market for holiday activities right now, and parents are often in a race against time to book their child a place at the best clubs. Not surprisingly, the providers are cashing in on this trend.
"But we often forget that children don’t need a fully booked calendar of pricey activity camps, and that there are much simpler and more pocket-friendly ways of finding holiday childcare. Sharing childcare with another family is a great idea - suggest taking turns to look after each other’s children once or twice a week, and do ask all available relatives for regular childcare help.
"If you have two or more children, then the cost of summer camps and activity clubs really does skyrocket. Paying per child for an activity isn’t always the best option for larger families, so it might be worth considering another childcare option that doesn’t multiply in cost depending on the number of siblings, such as hiring an au pair for the summer, or asking any students you know if they would like to gain some babysitting experience over the summer.”
Tax-Free Childcare
Another option to help with childcare costs is setting up a Tax-Free Childcare account with HM Revenue and Customs (HMRC).
Tax-Free Childcare can help pay for approved childcare for children aged 11 or under, or up to 16 if the child has a disability. Parents can receive up to £500 (or £1,000 if their child is disabled) every three months, which means for every £8 paid into their online account, they will automatically receive an additional £2 top up from the UK Government.
HMRC estimates it takes just 20 minutes to apply online for a Tax-Free Childcare account that can be used to help pay for a child’s nursery, childminder, breakfast or after school club or holiday activity club.
Once an account is opened, parents can deposit money immediately, so it is ready to be used whenever it is needed, and unused money in the account can be withdrawn at any time.
Eligibility for Tax-Free Childcare
Families could be eligible for Tax-Free Childcare if they:
Have a child or children aged 11 or under. They stop being eligible on September 1 after their 11th birthday. If their child has a disability, they may get up to £4,000 a year until September 1 after their 16th birthday
Earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
Each earn no more than £100,000 per annum
Do not receive Tax Credits, Universal Credit or childcare vouchers
A full list of the eligibility criteria is available on GOV.UK here.
Families can learn more about the childcare offers available to them and what could fit their family by visiting Childcare Choices on GOV.UK here.
Families in Scotland may also be able to access help through the Cost of Living Support Scotland website here.
