London Daily

Focus on the big picture.
Thursday, Sep 24, 2026

Nursery fees 'to rise by £1,000 this year' as childcare providers struggle with costs - forcing parents to quit work

Nursery fees 'to rise by £1,000 this year' as childcare providers struggle with costs - forcing parents to quit work

Nearly all childcare providers are set to hike prices as they try to cover costs and stay in business. There are fears it could lead to even more mothers leaving work and some say the government should be providing more help.

The soaring cost of childcare in the UK is revealed in new figures today, suggesting nurseries will raise fees by £1,000 this year.

A survey of 1,156 providers by the Early Years Alliance found nine out of 10 expect to increase fees, typically in April, and by an average of 8% - higher than in previous years.

UK childcare costs are already among the most expensive in the world, with full-time fees for a child under two at nursery reaching an average £269 a week last year - or just under £14,000 annually.

An 8% rise would take that to more than £15,000.

Three and four-year-olds in England attending a nursery or childminder are eligible for either 15 or 30 free hours a week depending on whether their parents work, so their costs are a lot lower.

There are different schemes in Wales and Scotland.

But the concern is that by this stage many parents - particularly mothers - have felt forced to drop out of work or cut their hours.

Tory MPs have been pressing the chancellor to take measures to make childcare more affordable in the March budget in order to reduce pressure on families, and enable more women to re-enter the workforce.

Former chief secretary to the Treasury, Simon Clarke, said: "Government action here feels essential."

But an option to extend free hours to all two-year-olds is understood to have been ruled out.

Most nurseries and childminders surveyed - 87% - said the money they get from the government does not cover their costs to provide the "free" hours - leaving them out of pocket.

More than half of providers (51%) said they had operated at a loss last year. A handful said they were looking at fee increases of as much as 25%.

Becky Burdaky, 26, from Wythenshawe, Greater Manchester, told Sky News she had taken the "daunting" decision to leave her job in sales after having her second child, Bobby, last year.

Her daughter Harriet, aged three, goes to pre-school near their home, but the family found the costs they would face for their baby son beyond their reach.

She will stay at home and they will live on the wages of her partner Steve, an electrician.

'Not asking other people to pay for my kids'

Becky said: "When we looked into the fees it was £70 a day - it would have been all of my wage. With Harriet it was about £54, so that's a huge difference.

"And if he was home poorly, I wouldn't get paid but I'd still have to pay his fee. Once we sat down and worked it out I would have been paying to go to work.

"I never envisaged myself being a stay-at-home mum, you know just cooking and cleaning and bringing up children, as I've always worked.

Becky says she could be starting from the bottom again when she returns to work

"It's our decision to have children - I'm not asking other people to pay for my children. And I definitely don't want people's taxes to go up because of it.

"But I think slightly subsidising the cost of fees so it's affordable for working parents means we can work and contribute.

"You don't know what it's going to be like when you return to work, you're starting from the bottom."

The campaign group Pregnant Then Screwed surveyed 27,000 parents last year and found nearly two thirds paid more for childcare than their rent or mortgage.

Although childcare costs have risen significantly in recent years, many providers are struggling to stay in business - with 5,400 closing their doors in the year to August 2022.

Fees for the youngest children, aged under three, are often used to keep the nurseries in business, and the rising cost of living means parents are cutting back.

'I've put my savings in to cover wages'

Delia Morris is the owner of Morris Minors pre-school in Croxley Green, Hertfordshire, where children used to start aged two but are now increasingly starting at three.

She is paid £5.41 an hour by the local authority for their free hours, but says providing it costs her around £7.

"Children come in later, when they are funded," she said.

"That's had a huge impact. I did raise my fees a very small amount this year but it doesn't cover it because we only have one or two children doing a couple of sessions a week [that parents pay for].

"I've had to put my own savings in to cover the wages last summer, and the staff had to drop a session."

As to what the government should do, she said: "They have to put money in. It's difficult to say, but I have to be realistic that if I can't make ends meet I will have to close and that's it."

Delia Morris says the government should provide extra funding for childcare


Neil Leitch, chief executive of the Early Years Alliance, said the organisation had closed half of the 132 nurseries it operated in the last four years.

"They are exclusively in areas of deprivation, which seems to fly in the face of any levelling up agenda. These are families and children who would benefit most from support and care," he said.

According to the OECD, the UK tops the table for the proportion of a mother's income taken up by childcare costs - based on two children in full-time care.

'The gender pay gap just explodes'


Christine Farquharson, education economist at the Institute for Fiscal Studies, said childcare costs for two-year-olds have risen twice as fast as inflation in the past decade - with a lasting effect on women's pay.

"We ended up in a situation where the youngest children have the highest prices they're ever going to pay, with the least access to government support," she said.

"And it's coming at this critical moment where parents are making decisions about whether or not to go back to work after they've been on parental leave.

"When mothers - and it is mostly mothers - make that choice to step back from the labour market it's not just those few years. The gender pay gap just explodes and literally takes decades to come back to anything approaching the situation before they became parents."

Proposals, championed by Liz Truss, to increase the ratio of children looked after by each adult, have attracted opposition from nurseries and parents.

But Tory MPs are pressing the government to help parents with the cost of childcare by reducing business rates for nurseries or extending free hours to two-year-olds.

Robin Walker, chair of the education select committee, said some of the existing schemes are not working effectively - such as tax-free childcare - for which uptake is only around 40%.

Universal Credit claimants are also eligible to have up to 85% of their childcare costs funded but are put off by having to make upfront payments.

"There is money there that isn't being used," he said. "Upfront payment for Universal Credit and tax-free childcare are putting a lot of parents off using them at all.

"The government is already spending more than any previous government has in this space, but other countries in Europe are spending more particularly in the 0-2 age bracket.

"If we were to make the case for more investment it would unlock those opportunities for people to continue in the workplace and stimulate children in the early years."

If they win power, Labour have promised an expansion of childcare from the end of maternity leave until the start of primary school.

Shadow education secretary Bridget Philipson told Sky News this would be a "key battleground issue" at the next election.

A Department for Education spokesperson said: "We recognise that families and early years providers across the country are facing financial pressures and we are currently looking into options to improve the cost, flexibility, and availability of childcare.

"We have spent more than £20bn over the past five years to support families with the cost of childcare and the number of places available in England has remained stable since 2015, with thousands of parents benefitting from this."


Newsletter

Related Articles

0:00
0:00
Close
Royal Navy Commandos Complete Maritime Operations Training With US Navy SEALs
Vistry Profit Warning Adds to Concerns Over UK Housebuilding Conditions
UK Commits £343 Million to Major Expansion of Community Mental Health Services
Five Eyes Partners Back UK-Led Campaign Against Global Fraud Networks
UK Businesses Gain Full Access to £13 Trillion CPTPP Trading Bloc
UK Allocates Nearly £10 Billion for Council, Social and Affordable Housing
Chancellor John Healey Unveils Deregulation Drive to Accelerate UK Investment and Growth
Prime Minister Andy Burnham Sets Out Post-Brexit Foreign Policy Vision at United Nations
UK Reassesses Chagos Arrangements as Burnham Seeks New Path on Diego Garcia
Key Trends to Watch
Government’s “Buy British” Procurement Push Targets More Domestic Jobs and Industrial Capacity
Scotland Launches Four-Year Flood Resilience Programme With New Community Funding
Low-Income Renters Face Record Gap Between Housing Support and Private Rents
UK and US Test Torpedo Launch From British Undersea Drone in Defence Technology Milestone
Britain Pushes Artificial Intelligence Security Onto United Nations Security Council Agenda
Treasury Committee Defends Office for Budget Responsibility Independence Amid Fiscal Pressure
Scotland Records Eleven Per Cent Rise in Drug-Use Deaths as Cocaine and Nitazenes Drive Concern
Welsh Government Sets Four-Year Programme Around Health, Living Costs, Jobs and Housing
Study Finds Most People With High Blood Pressure in England Remain Undiagnosed
Britain Plans First National Workplace Health System to Tackle Economic Inactivity
England to Introduce Vocational GCSEs in Major Secondary Education Reform
UK Elevates Climate and Nature Risks to National Security Priority
Andy Burnham and Donald Trump Put Trade at Centre of First Major Bilateral Meeting
Andy Burnham and Ursula von der Leyen Push Ahead With Closer UK-European Union Economic Ties
UK Government Borrowing Jumps to Eighteen Point Three Billion Pounds Ahead of October Budget
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
Reform UK Names Helen Jenner as New Leader in Wales
England Expands Devolution of Transport, Skills and Economic Development Powers
Liberal Democrats Call for Temporary Fuel Duty Cut to Ease Cost-of-Living Pressure
UK Farmers Warn Drought Has Caused Crop Failures and Reduced Harvests
UK Fixed Mortgage Rates Approach 6% as Lenders Raise Borrowing Costs
YouGov Poll Puts Labour at 23% With Conservatives and Reform UK on 21%
Badenoch Presses Burnham to Increase Defence Spending and Cut Welfare Costs
UK Military Figures Warn of Growing Threats to Undersea Infrastructure and National Readiness
BP Moves Ahead With Sale of UK North Sea Oil and Gas Business
UK and ASEAN Endorse New Framework for Trade and Economic Cooperation
UK Consumer Confidence Falls to Three-Year Low as Borrowing Costs and Job Concerns Rise
UK Inflation Rises to 3.1% as Motor Fuel Costs Push Prices Higher
Bank of England Sets Multi-Year Plan to Wind Down Quantitative Easing Holdings
UK Borrowing Rises to £18.3 Billion in August Ahead of October Budget
Michelin Guide Faces Industry Questions Over Restaurant Inspection Coverage
English Woodlands Face Renewed Weather Stress From Dry Conditions and Strong Winds
Research Finds Extensive Alcohol, Gambling and Unhealthy Food Branding During 2026 World Cup
Five Charged After Newborn Baby Dies From Stab Wounds in Sheffield
BT Could Reap £2 Billion From Recycling Copper as Full-Fibre Network Expands
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
Reform UK Names Helen Jenner as New Leader in Wales After Dan Thomas Steps Down
Resolution Foundation Calls for Broad-Based Tax Rises to Fund Higher UK Defence Spending
Ed Davey Calls for Global Treaty to Halt Development of Super-Intelligent AI
Scotland Consults on Legal Price Caps for Essential Foods
×