London Daily

Focus on the big picture.
Saturday, Jul 18, 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
For 36 Years, He Scammed About 300 Luxury Hotels — Until He Was Caught
England's World Cup Exit Expected to Cost Hospitality and Retail £334 Million
Former ICC Prosecutor Aide Speaks Publicly About Allegations Against Karim Khan
Opposition Raises Questions Over June Heatwave Power Grid Pressures
Mastercard Explores Sale of Majority Stake in UK Payments Operator Vocalink
Boeing Forecasts Global Commercial Aircraft Fleet Will Double by 2045
London GP Surgeries Receive £18 Million to Expand Primary Care Capacity
Health Advisers Recommend Nationwide Meningitis B Vaccination for Teenagers
OECD Warns UK Economy Faces Slower Growth and Weak Productivity
Treasury Places Major Global Cloud Providers Under Direct Financial Oversight
Financial Markets Rally as Shabana Mahmood Emerges as Leading Treasury Candidate
Incoming Government Prepares Thames Water Nationalisation and New North Sea Drilling Approvals
UK Government Plans Deep Cuts to Bilateral Aid for African Nations
United States and Iran Exchange Direct Strikes for Seventh Consecutive Night
Incoming Prime Minister Andy Burnham Confirmed as Labour Leader Ahead of Downing Street Handover
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
Andy Burnham Takes Labour Leadership and Prepares to Become Britain’s Seventh Prime Minister in a Decade
Tech Companies Want to Move Computing Off Your Screen and Onto Your Body
White House Teleprompter Operator Earned More Than $100,000 From Bets Linked to the President's Speeches
French Prime Minister Survives No-Confidence Vote After Controversial Budget Cuts
European Commission Opens Excessive Deficit Procedure Against France
French Senate Blocks Key Immigration Reform Measures
French Government Pushes EU Action Against Ultra-Fast Fashion Imports
French Parliament Debates Expanded Autonomy Powers for Corsica
France Reopens Autonomy Talks With New Caledonia After Months of Unrest
Bordeaux Wine Producers Seek Three Hundred Million Euro Aid Package After Export Collapse
French Farmers Block Spain Border Crossings Over Imported Food Competition
Cannes Film Festival Bans Fully Artificial Intelligence-Generated Films From Competition
TotalEnergies Shifts More Than Three Billion Euros of Green Investment From Europe to the United States
LVMH Chief Executive Bernard Arnault Presents Succession Plan for Luxury Empire
Kering Reports Fifteen Percent Revenue Drop as Chinese Luxury Demand Weakens
Sanofi Reports Positive Results From Messenger RNA Respiratory Vaccine Trials
France Places Energy Price Caps Under Review to Protect Households Through Winter
EDF Connects Two New Nuclear Reactors to France’s Electricity Grid
Mistral Secures European Commission Contract for Sovereign Artificial Intelligence Models
Renault Opens Next-Generation Electric Battery Plant in Northern France
Air France Signs Two Billion Euro Sustainable Aviation Fuel Deal to Cut Emissions
Marseille Launches Three Billion Euro Port Expansion to Strengthen Mediterranean Trade Role
French-Owned Ubisoft Announces Global Restructuring With Nearly One Thousand Job Cuts
National Railway Operator Suspends Artificial Intelligence Ticket Pricing System After Consumer Backlash
United Kingdom to Ban Sales of High-Caffeine Energy Drinks to Under-Sixteens
Home Office Designates Iranian and Russian Paramilitary Groups as National Security Threats
National Health Service Launches Housing Plan to Retain London Healthcare Workers
British Heatwave Fuels Wildfires and Emergency Evacuations in Scotland
United Kingdom and Estonia Sign Defence Agreement to Strengthen NATO’s Eastern Flank
United Kingdom Cuts Bilateral Aid to African Nations by More Than Eighty Percent
Bank of England Overhauls Banking Rules to Encourage More Lending to Businesses
United Kingdom and India Free Trade Agreement Enters Into Force, Reshaping Bilateral Economic Ties
Andy Burnham Confirmed as New Labour Leader and Prime Minister-Designate
UK Government Faces Pressure Over Extreme Heat Workplace Rules
×