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Cost of childcare in the North East has increased by between 29% and 68% since 2010

  • In the North East the cost of childcare has increased by between 29% and 68% since 2010, compared with wages, which have risen by around 16% in the same period.
  • This means that costs have increased well ahead of wages which have risen by around 16% in the same period.
  • Labour promises 30 hours of free childcare a week for all 2-4 year olds;

Labour analysis, using figures from the Family and Childcare Trust’s annual survey of childcare costs, shows that, depending on the age of the child and type of provision, the cost of childcare has increased by between 32% and 47% across England as a whole.

However, wages have risen by only around 16% in the same period, meaning the cost of childcare has risen by between two or three times the rate of wages since 2010.

The cost of 25 hours of childcare a week across the North East has risen by £47.30 for nursery places for children under two years old, £48.11 for nursery places for children over two, £24.20 for a childminder for children under two and £24.02 for childminder for children over two.

The rise in the cost of childcare, at a time when real incomes are increasingly squeezed, will lead to families facing a situation where returning to work may not actually pay, as the cost of childcare could be higher than any additional income.

The families on the lowest incomes, who are not eligible for the Government’s extended entitlement to free childcare, will face the greatest pressure as costs continue to rise but additional Government support is not forthcoming.

Labour has committed to 30 hours of free childcare a week for all two to four year olds.

Angela Rayner MP, Labour’s Shadow Secretary Education Secretary, said:

“The cost of childcare has skyrocketed under this Tory Government, showing that they are failing to deliver affordable, sustainable childcare for families across the country.

“At the same time wages have stagnated and risen at half the rate of childcare costs, making it harder for working families to make ends meet.

“The next Labour government will give a fully-funded offer of 30 hours of free childcare to every 2-4 year old in England as we build a country that works for the many, not the few.”

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