The cost of childcare in London has pushed almost half of parents into debt, new research has revealed.
Londoners are spending more than a third of their monthly personal income on childcare according to a survey by London business groups.
Despite the high costs, more than two thirds of parents rated the quality of their childcare as good or excellent.
BusinessLDN and the Central District Alliance – a business improvement district representing parts of central London – commissioned the survey and today called on the government to boost the affordability and availability of childcare.
It comes after previous research by charity Coram Family and Childcare found London suffers from the worst childcare shortages in the country and the highest prices.
The problem is most severe in outer London with almost three quarters of councils saying they do not have enough places for children under the age of two.
Chancellor Jeremy Hunt has pledged to offer 30 hours of free childcare to working parents from the age of nine months as part of a major package of childcare reforms. He has also announced plans to increase the number of children that nursery staff can look after.
Under plans announced in the Budget, the number of two-year-olds a carer can look after will rise from four to five.
Muniya Barua, Deputy Chief Executive of BusinessLDN, said: “While the Government has announced some helpful measures to expand free hours and provide extra funding for providers, these do not go far enough. A bold and comprehensive plan to reform childcare is needed to get more parents and carers into jobs and to help address the juggling act that they face.”
She added: “At the same time, employers can also help by offering greater flexibility on working hours, boosting their maternity and paternity packages, and providing childcare vouchers.”
Debbie Akehurst, CEO of Central District Alliance, said: “The career progression of many is often restricted by a lack of affordable childcare, which inhibits their ability to work. With businesses facing high staffing vacancy and turnover rates, the need for urgent reform of childcare provision is now more vital than ever.”
She added: “By creating more affordable childcare solutions, more parents and carers will be able to rejoin the workforce or increase their working hours; not only relieving their own financial pressures but enabling businesses to flourish and boosting the economic growth of our business centres.”
The survey of 1000 London parents found 53 per cent of respondents rated their childcare as unaffordable, while 49 per cent of respondents reported getting into debt because of their childcare costs. Just over a quarter (26 per cent) said the cost and availability of childcare had negatively impacted their career.
