The average cost of childcare for under-twos in Scotland could reach £58.60 a day and £1,165.95 per month by April 2023 according to new research carried out by pension provider Penfold.
Despite this being lower than the UK average, there are increased concerns that the rise could affect families in a negative way as nursery fees increase. The research saw a survey carried out of 1,156 UK nursery providers by the Early Years Alliance and it showed that almost nine in 10 say that they are looking to hike their 2023 fees.
Penfold says that on average the price of childcare could increase by eight per cent. The pension provider says that the average cost across the UK to put their child into nursery comes in at £55.39 a day or £1,106.52 a month.
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The Annual Survey of Hours and Earnings that have been shared by the Office for National Statistics (ONS) in 2021, the median gross weekly wage for those working full-time in Scotland was £599 per week and £2,596 per month, the Daily Record reports.
Going off these figures, it means that the average cost of full-time nursery care for under-twos of £1,106.52 per month takes 42 per cent of the average wage in Scotland, suggesting that childcare costs can be a significant financial burden for many families.
Most expensive places to have a child
Scotland is in the middle of the pack compared to the rest of the UK, with an average cost per day of £54.26 and £1079.59 per month for putting your child in nursery.
Scotland’s average nursery costs:
Average cost per day: £54.26
Predicted eight per cent increase: £58.60
Average cost per month: £1,079.59
Predicted eight per cent increase: £1,165.95
Scotland is understood to have one of the least expensive average costs but the research revealed that Aberdeenshire was the most costly with an average cost per day of £67.10 and £1,341.98 per month.
Average costs by region
1. Aberdeenshire: £67.10 per day, £1,341.98 per month
2. Edinburgh: £63 per day, £1,269 per month
3. Midlothian: £62 per day, £1,240 per month
4. East Lothian: £58 per day, £1,167 per month
5. Glasgow: £56 per day, £1,116 per month
6. Highland: £55.35 per day, £1,107 per month
7. Stirling: £55 per day, £1,108 per month
8. Moray: £53.50 per day, £1,070 per month
9. Perth and Kinross: £53.20 per day, £1,064 per month
10. Falkirk: £53 per month, £1,059 per month
Top 10 cheapest regions in Scotland
The cheapest region was Argyll & Bute with an average cost of £41.63 per day and £832.67 per month.
Average costs by region
1. Argyll & Bute: £41.63 per day, £832.67 per month
2. Angus: £50.28 per day, £1,005.50 per month
3. Ayrshire: £50.97 per day, £1,019.48 per month
4. Scottish Borders: £51 per day, £1,025 per month
5. Fife: £51.66 per day, £1,033.16 per month
6. Renfrewshire: £52 per day, £1,036 per month
7. Dunbartonshire: £52 per day, £1,040 per month
8. West Lothian: £52.59 per day, £1,051.70 per month
9. Lanarkshire: £52.68 per day, £1,053.64 per month
10. Falkirk: £53 per day, £1,059 per month
Impact on future savings
Penfold say that for the average 30-year-old, £375 per months need to be saved, or £4,284 per year to save enough for their retirement. They argue that if the cost of living continues to bite, then parents will be forced to choose between providing for their children and securing their own retirement future.
Pete Hykin at Penfold, explained: “The increase in childcare costs is pushing parents, especially mothers, out of full-time roles which stunts their career options but also widens the savings gap as they’re less able to contribute to their pension pots. The maternal pay gap which measures the wage difference between mothers and non-mothers is growing and with this increase in nursery fees and lack of support, this will continue to grow.”
He continued: “The biggest contributor to the gender pension gap is that women spend more time than men outside of paid employment doing unpaid caring, for example looking after young children or taking care of elderly relatives.
“Women perform 60 per cent more unpaid work than men on average and as a result, mothers make up the majority of part-time workers, they frequently do so to care for their children or other persons. Unfortunately, they pay dearly for attempting to strike a balance between these two positions.”
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