Half of single UK parents borrow to cover childcare costs

Nearly half of single parents in the UK have needed to borrow money to pay childcare fees over the past two years.

Family welfare charity Gingerbread conducted a survey in which 47% of respondents admitted to having borrowed money to cover childcare costs. Almost a third of those surveyed had missed a childcare payment in the past two years.

A further 52% of respondents also said that they found the financial cost of childcare difficult overall.

Over a third of those surveyed said that they used at least three different forms of childcare during term times, often a mixture of nurseries, childminders, after-school clubs, and informal care from grandparents or friends.

Gingerbread’s chief executive Fiona Weir commented: “Childcare just isn’t affordable for many and it is very worrying that single parents are having to turn to friends and family, banks and credit cards to try and cover costs.”

The need for childcare has increased in recent years as parents have spent more and more time in the labor market, though quality will inevitably vary with cost. Erdal Tekin writes about the strengths and limitations of childcare subsidy policies, noting that these can increase employment and reduce welfare dependence among low-income families. However, he also says that this may in turn diminish the quality of care and can have negative impacts on the child’s wellbeing.

Meanwhile, Daniela Del Boca writes about how different forms of childcare can impact upon child development asserting that, while children benefit most from parental care, formal external childcare can actually boost a child’s soft-skills such as problem-solving and general social skills.

Read more here.