How much should you be spending on childcare?

The cost of childcare has risen four times faster than wages since 2008, reveals the TUC in a new report.

Childcare costs have shot up by 48% between 2008 and 2016. In some parts of the country they have risen by even more.

In London, childcare costs have risen 7.4 times more quickly than pay, in the East Midlands 7 times more, and in the West Midlands 4.8 times more.

Frances O’Grady, TUC General Secretary, said: “The cost of childcare is spiralling but wages aren’t keeping pace. Parents are spending more and more of their salaries on childcare, and the picture is even worse for single parents.

“Nearly a million working parents with one-year-old kids have eye-watering childcare bills. There is a real gap in childcare support for one-year-olds until government assistance kicks in at age two.

“Parents need subsidised, affordable childcare from as soon as maternity leave finishes to enable them to continue working, and so mums don’t continue to have to make that choice between having a family and a career.”

So what are the averages?

• A single parent working full-time with a child in nursery for 21 hours a week spends 21% of their wages on childcare.
• A single parent working full-time with a child in nursery for 40 hours a week spends 40% of their wages on childcare.
• One parent working full-time and one parent working part-time with a child in nursery 21 hours a week spends 14% of their wages on childcare.
• Two parents working full-time with a child in nursery for 21 hours a week spends 11% of their wages on childcare.

If you are raising a child, find out what financial help is available.