Childcare costs see parents risk debt

Wed, 31 Aug 2011

The cost of childcare could be putting families at risk of debt, with new data showing that some parents are giving up work as they are struggling to earn enough to pay for someone to mind their kids.

According to the statistics from Aviva, 32,000 more women have chosen to stay at home and look after their offspring since the third quarter of 2010.

This is a result of already low incomes for females being eroded by the costs of working, such as transport and childcare.

Parents also have to pay 6.89 per cent more on school extras, which equates to £111 per month on average, the statistics show.

Aviva head of protection Louise Colley is mum to four-year-old twins and explained that the report shows that many families with young children face a challenge to stay out of debt.

"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," she said.

Meanwhile, Aviva also released figures showing that families are being forced to cope with lower incomes and savings, despite the fact that the cost of living is increasing.
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