Action is needed to prevent London parents being locked out of employment because of ‘eye-wateringly high’ childcare costs, a new report from the London Assembly says today (22nd February)

Tackling childcare affordability by the Assembly’s Health and Public Services Committee, says childcare costs in the capital are up to a third higher than elsewhere in the UK - an average of £119 a week for a child under two years old.  

Recent research has found that, on average, London families spend a larger proportion of their income on childcare and travel than people in the rest of the country . However, Londoners do not get extra financial help to meet higher childcare costs through schemes such as tax credits and Universal Credit, which is set to replace it.

At a time when household bills are rising, London parents also face more challenges than parents in other regions because of longer working hours, lengthy commutes and being less likely to have family close by to help look after children.

The situation is compounded by local authority budget cuts which mean the closure of affordable nurseries at Children’s Centres in some areas. The Committee also found that most nurseries attached to primary schools offer the 15 hour free entitlement as short sessions, which may not suit most working parents and, although other providers offer more flexibility, they may be unaffordable for many .

Victoria Borwick AM, Health and Public Services Committee Chair said: “If we want to give children a good start in life, then we need childcare that is accessible, high quality and fits around families’ needs.

“We know that for those parents who wish to work, affordable childcare can bring real benefits to their children, especially those from more disadvantaged backgrounds.

“However, with London families having to find up to £22,000 a year for a full-time nursery place, many parents simply cannot afford to return to work after having children. Many also find the current system of 15 hours free childcare is not flexible enough to fit around their job, particularly if they work long hours.

“We understand that a great deal is happening to make it easier for parents to access and afford childcare. However, we think that all levels of government should do more so that London parents can work, study or train, and build a better life for their families.”

During its investigation, the Committee found that around half of London mothers are employed compared to two thirds nationally, which suggests those in the capital face particular difficulties in making employment a viable option. There is also a lower proportion of part-time jobs in the capital than in other regions. 

The report also notes that childcare providers do not receive significantly more funding for the free nursery entitlement to cover their higher staffing and accommodation costs in London, making running the business unsustainable for many.

The Committee welcomes Government plans to improve flexibility for the free entitlement and will write to ministers to ask them to try to ensure that primary school settings in particular consider ways of delivering it so that parents can choose how they spend it to suit their working or study times.

The Committee’s report also calls on:

• 
  The Government to develop the childcare element of Universal Credit so the maximum amount families can claim varies according to local childcare costs.
• The Government to explore reweighting grants for local authorities to cover free entitlement for early education to factor in local costs
• The Mayor to include improving access to early years’ education in his education inquiry
• The Mayor to promote childcare vouchers schemes to the capital’s employers
• London Councils to promote good practice to improve access to affordable childcare
• London Councils to develop a register of organisations that may be able to manage and run nurseries linked to children’s centres.

London Assembly - Holding the Mayor to account and investigating issues that matter to Londoners