Working mums pay a third of their salaries on childcare
Published ¤ 02/01/2013 13:30:52
A new study has found that working parents who receive no help with childcare from their families have to pay £7,127 a year in childcare costs to look after just one child.
This means that for a parent working full-time, one third or four months of their annual earnings goes on childcare costs.
This is causing many potential working parents to reject the idea of returning to work because it is unaffordable.
The figures are based on one child and a parent not having any help with childcare from family or government schemes to help working parents. The study used average childminder and nursery costs from local authorities and average regional earnings figures from the Office for National Statistics (ONS) to get the figures.
The research was carried out by Family Investments who found that parents in the South West have the biggest burden, having to work for almost 19 weeks to break even on child care.
Parents in the North of England have to work on average a week less to cover the cost than parents in the South.
Parents in the West Midlands get the most help from family which means they only have to work for 15 weeks to cover child care costs. In London the figure is 17 weeks with the average annual cost rising to £9,283.
Under government legislation once a child reaches the age of three, parents are entitled to 15 hours a week of free education for their child. Government vouchers are also available which allows childcare to be paid out of gross salaries, effectively making this element of childcare costs tax deductable.
This means basic rate taxpayers can pay up to £243 of childcare each month using the vouchers.
Kate Moore, of Family Investments which did the research, said "These figures highlight the very significant costs mums face if they choose to return to work after maternity leave and the fact that they will spend up to four months of the year simply working towards these costs.
"What really jumps out is both the scale of the costs and the disparities in local affordability."
For those mothers that do return to work, this report highlights just how important it is for them to be protected, yet still, over half of all working women have NO life cover whatsoever!
So, if you are concerned about the cost of looking after your children, particularly if something should happen to one of the parents, then call PKS today.
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