Childcare costs forcing parents out of work

WORKING parents are increasingly questioning whether they can both afford to continue to work, due to the high cost of providing care for their children, a new report has revealed.

According to the latest Family Finances Report from Aviva, the average Scottish mother with two children and a full-time job is left with just £113 a month after paying for childcare. UK-wide, the number of women who choose to stay at home to look after their families has increased by 32,000 over the past year.

A typical bill for childcare for youngsters under two – before any state-funded nursery or school place is provided – is about £729 a month.

In addition to childcare and schooling costs, the average working family member spends £120 per month on expenses associated with employment such as transport, food and clothing if they are working full-time. Part-time workers spend slightly less at £90.

Louise Colley, head of protection at Aviva, said: “As this report highlights, the cost of childcare in Scotland can be enough to cause some families to consider whether they would be better off financially if they relied upon one income.

“As care costs rise, it’s quite possible we will see more and more couples relying on one salary while the other person looks after the children – simply because they may actually be worse off if both people work.

“However, while this may make financial sense, it can also leave families vulnerable should anything happen to that income earner.”

She added: “Families continue to have a difficult job in balancing their monthly financial obligations and providing their families with financial security.”

But she warned the study had revealed that 95 per cent of UK families do not feel completely financially protected against the loss of an income.

The report also found that 11 per cent of Scottish families now survive on less than £750 a month – up from just 8 per cent in May. But while many incomes are squeezed, the cost of living is continuing to rise.

“School inflation”, the increase in costs for items such as stationery, uniforms and school trips, currently stands at more than 6 per cent – well above the standard inflation figure of 4.4 per cent – which is, in itself, high.

“Even those who don’t pay for childcare find that they are spending an average of £111 per month on child-related expenses such as sports activities, food at school, clothing and transport,” added the report.