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July 24, 2017
BBC, The Family and Childcare Trust, OECD

The cost of childcare and school holidays is rising

The cost of childcare and school holidays is rising

As summer holidays are beginning for school children across Europe and the US, many working parents are facing the challenge of arranging affordable childcare for the coming weeks.

According to a 2016 report, families across OECD countries spend an average of 15% of their net income on childcare. However, costs vary widely between countries, and also between single or dual-earner parents.

Lone parents in the US can expect childcare to account for over half of their income, while the figure is one-third of net income for couples in the UK and New Zealand. Several recent surveys have found that the average cost of childcare is rising in the US and UK, with UK holiday childcare in particular rocketing by 4% since last year to £125 per child each week. There has also been a drop in the number of UK local authorities with sufficient holiday childcare provision for four to seven year olds, from 33% in 2016 to 29% in 2017.

Suitable and reliable childcare is of vital significance for economies as it helps parents maintain employment, and boosts well-being and outcomes for children and families. The Family and Childcare Trust says that high-quality holiday childcare "gives children the opportunity to take part in positive activities that they might not otherwise access."

The Family and Childcare Trust produced a report earlier this year assessing a number of case studies of innovative and sustainable childcare options around the world. Examples include kindergarten price caps and free entitlement for three and four year olds in Norway, and intergenerational care provision in Japan. On-site workplace childcare is another scheme that has been successfully introduced by firms such as Patagonia, Home Depot and Goldman Sachs.

In an article for IZA World of Labor, Erdal Tekin states the importance of high-quality childcare, particularly in early years, for promoting child development and school success. Tekin suggests that "given the significant economic and social payoffs associated with high-quality childcare," childcare policy should prioritize quality of care over promoting parental employment. Meanwhile, "the employment goal could be achieved through more direct policy instruments."

Read more articles on childcare policy here.

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