Nursery fees ‘to rise by £1,000 this year’ as childcare providers struggle with costs – forcing parents to quit work
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.
Cost of living – latest: Semi-skimmed milk and children’s jeans – the details behind inflation
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.
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.
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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.”
World
‘Have the meeting now!’: Trump says Ukraine should ‘immediately’ agree to direct talks with Russia
US President Donald Trump has demanded that Ukraine should “immediately” agree to direct talks with Russia in a bid to end the war.
It comes after Ukraine’s President Volodymyr Zelenskyy said his team were “ready to meet” Russian representatives following Vladimir Putin suggestion of peace talks, subject to an unconditional ceasefire starting on Monday.
Russia‘s president put forward the proposal for talks in Istanbul on Thursday after European leaders including Sir Keir Starmer threatened him with fresh sanctions if Russia failed to comply with an unconditional 30-day ceasefire starting on Monday.
Analysis:
Why calls for Ukraine talks are likely a delaying tactic from Putin
However, in a post on his Truth Social platform on Sunday, Mr Trump said he was “starting to doubt that Ukraine will make a deal with Putin”.
He urged them to accept the meeting invitation “immediately”, adding “have the meeting now”.
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Putin’s call for peace talks genuine?
Mr Trump wrote: “President Putin of Russia doesn’t want to have a ceasefire agreement with Ukraine, but rather wants to meet on Thursday, in Turkey, to negotiate a possible end to the bloodbath.
“Ukraine should agree to this, immediately. At least they will be able to determine whether or not a deal is possible, and if it is not, European leaders, and the US will know where everything stands, and can proceed accordingly.
“I’m starting to doubt that Ukraine will make a deal with Putin, who’s too busy celebrating the Victory of World War ll, which could not have been won (not even close!) without the United States of America.
“Have the meeting now!”
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Kremlin: ‘We don’t share Starmer’s view’
Shortly after Mr Trump’s post, Mr Zelenskyy posted on X saying: “We await a full and lasting ceasefire, starting from tomorrow, to provide the necessary basis for diplomacy.
“There is no point in prolonging the killings. And I will be waiting for Putin in Türkiye on Thursday. Personally. I hope that this time the Russians will not look for excuses.”
When Mr Putin first suggested the talks, Mr Trump hailed it “a potentially great day for Russia and Ukraine” and said he would “work with both sides to make sure it happens”.
Read more from Sky News:
Pope Leo calls for Ukraine peace
Michael Clarke Q&A on Ukraine war
Turkish president Recep Tayyip Erdogan also said he “fully supported” Mr Putin’s proposal and was ready to host the talks, after the two leaders spoke over the phone on Sunday.
But security and defence analyst Michael Clarke told Sky News presenter Matt Barbet there is a “long way between now and Thursday” and a “fair bit of brinkmanship” going on.
He said even if the talks do go ahead, “the chances are they’ll extend over a long period and there won’t be a ceasefire as a result of them, and the Russians will keep playing this out”.
European leaders hold call with Mr Trump. Pic: Number 10
Mr Putin’s counteroffer of talks came after Sir Keir, Mr Zelenskyy, French President Emmanuel Macron, recently elected German Chancellor Friedrich Merz and Polish Prime Minister Donald Tusk met in Kyiv.
The leaders said they had secured Mr Trump’s backing after briefing him on the progress made on the so-called “coalition of the willing” plans in a 20-minute phone call.
World
Terror group supporters posted on TikTok, YouTube and Google from site targeted in Indian airstrikes
Social media accounts expressing support for a Pakistan-based terror group linked to al Qaeda appear to have posted recent videos from a Pakistan mosque targeted by Indian airstrikes.
Sky News has found videos posted on TikTok, YouTube and Google that appear to be filmed at the Markaz Taiba Mosque in Muridke. The captions and usernames contain expressions of support for the Lashkar-e-Taiba (LeT) and a group called ‘313’.
Sky News has found and geolocated multiple videos that appear to be filmed in the area where the captions include either or both ‘313’ and LeT.
Some of the videos show men in the streets with guns. Another post captioned a video of children doing martial arts training inside the targeted mosque, “we are little soldiers, and we fight the non-believers”.
The caption of the video reads ‘we are little soldiers, and we fight the non-believers’. It uses the hashtag ‘313’.
The caption uses the hashtag #جہاد313, which translates to ‘313’ jihad.
‘313’ appears to refer to the 313 Brigade, a proscribed terror organisation in Pakistan.
In a TikTok video posted to the Google page for Markaz Taiba Mosque in Muridke, a man can be seen walking along the street with a gun.
The account that posted that video wrote in their description, “Lashkar Taiba, Mujahid Force, ‘313’ and Markaz Taiba Muridke”, self-proclaiming their support for the groups.
This screenshot from the Google user labels Lashkar-e-Taiba and ‘313’ and includes the location name Muridke
India’s retaliatory strikes on Pakistani-adminstered Kashmir and Pakistan on 7 May came after a deadly attack in Indian-administered Kashmir last month.
Gunmen opened fire on tourists, killing 26 people and injuring dozens in a popular holiday spot near Pahalgam, Kashmir, on 22 April.
LeT were accused by India of involvement in the Pahalgam attack through their proxy the Resistance Front, which claimed responsibility for the attack.
LeT, which is designated as a terrorist organisation by the UN Security Council and the UK, focuses on fighting Indian control in Kashmir and is based in the Punjab region of Pakistan.
Pakistan denies allegations of terror camps operating in the country. This region has been in the control of the Punjabi government since 2010. The Punjab government condemned the Indian strikes, and declared a state of emergency across Punjab.
Muskan Sangwan, senior intelligence analyst at TRAC, a terrorism research and analysis consortium, told Sky News: “Brigade 313 is al Qaeda in Pakistan. It’s an umbrella organisation for members of several groups like Taliban, Lashkar-e-Jhangvi, Haqqat ul-Jihad-al-Islami, Jaish-e Muhammad, Lashkar-e-Taiba, and Jundullah.”
Ms Sangwan explained that ‘313’ refers to the number of companions said to have fought with the Prophet Mohammed in the Battle of Badr.
TRAC have seen a recent uptick in TikTok videos and other social media posts that refer to ‘313’.
Many of the accounts are linked to each other.
Ms Sangwan said: “They [the TikTok users] mostly use ‘313’ as a hashtag… trying to push that hashtag to as many people it can reach on social media.”
Sky News sought to verify the location by comparing before and after videos from the strike location, and using the video released by the Indian army conducting the strike.
One video showing damage at the strike location was posted by a user with 313 in their TikTok username.
The TikTok account that posted video footage of the destruction in Muridke has 313 in the username
Below is satellite imagery that shows the destruction of the site.
Satellite imagery shows Markaz Taiba Mosque after the strike on 7 May. Credit: Maxar
In one TikTok, the video is captioned “bring your arms and ammunition and go to war”. The text on the screen of the TikTok is ‘313’ and he is carrying a gun.
The group are comfortable with having an online presence. On the Google tag for Markaz Taiba Mosque in Muridke, men pose for a group photo. Almost all the people in the photo have used ‘313’ on TikTok.
Ms Sangwan explained: “With these people from Muridke, pushing this propaganda on social media would generate a lot of significance in terms of recruitment and in terms of gaining support from local people and from other people.”
Sky News’ Asia correspondent Cordelia Lynch has reported on the ground in Muridke.
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Anger in Pakistan after India strikes
India says it struck Markaz Taiba, a site in Muridke about 15 miles (25km) from the border, which has long been claimed to be a terrorist training site associated with LeT.
MEMRI, a US-based research group that monitors terrorist threats, told Sky News: “It has been known for decades that Lashkar-e-Taiba has its headquarters in Muridke.”
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Sky News contacted the Pakistan Ministry of Defence for comment. Khawaja Asif, Pakistan’s defence minister, told Sky News: “This appears to be a random video with background music added later – consistent with how TikTok trends often function. If this is to be considered credible evidence, we could produce millions of similar clips ourselves.”
Mr Asif also said that any suggestion that the mosque was used as a base by terrorists was a “completely false, social media made up hoax”.
On 7 May, after the strikes in Pakistan, the Indian subcontinent branch of al Qaeda issued a statement condemning India’s actions and encouraging its supporters to wage jihad against India.
The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.
Volodymyr Zelenskyy has said his country is “ready to meet” Russian representatives after Vladimir Putin suggested peace talks in Istanbul from Thursday.
Russia‘s president put forward the proposal as European leaders including Sir Keir Starmer threatened him with fresh sanctions if Russia failed to comply with an unconditional 30-day ceasefire starting on Monday.
Reacting to Mr Putin’s suggestion, US President Donald Trump said it was “a potentially great day for Russia and Ukraine” and he would “work with both sides to make sure it happens”.
Mr Zelenskyy has also welcomed the proposal, but reiterated his call for a ceasefire.
He said: “It is a positive sign that the Russians have finally begun to consider ending the war. The entire world has been waiting for this for a very long time. And the very first step in truly ending any war is a ceasefire.
“There is no point in continuing the killing even for a single day. We expect Russia to confirm a ceasefire – full, lasting, and reliable – starting tomorrow, May 12th, and Ukraine is ready to meet.”
On Saturday, the prime minister met the Ukrainian president alongside French President Emmanuel Macron, recently elected German Chancellor Friedrich Merz and Polish Prime Minister Donald Tusk in Kyiv.
Announcing the 30-day ceasefire proposal, the leaders said they had secured the backing of Mr Trump after briefing him on the progress made on the so-called “coalition of the willing” plans in a 20-minute phone call.
What Trump does next is crucial
Russian President Vladimir Putin is playing for time and may have been caught on the hop by European leaders, backed by US President Donald Trump, demanding a 30-day ceasefire during their visit to Kyiv yesterday.
Russia’s proposal of talks in Istanbul on Thursday appears hurriedly conceived, announced as it was in the early hours of the morning by Putin.
There is an added symbolism to his suggestion of Istanbul as a venue. Russia has long blamed Ukraine for walking away from peace talks in the same city in 2022.
The key thing is that diplomatic movement of sorts is happening.
Ukraine and its European colleagues want to capitalise on Trump’s renewed enthusiasm for a ceasefire and his potential scepticism of how ready Putin actually is to make peace.
The Europeans will hope this isn’t drawn into a protracted period of negotiations, or simply talking about the idea of negotiations.
What President Trump does next will be crucial.
Speaking at the Kremlin in the early hours of Sunday, Mr Putin did not directly address the proposal but instead offered to restart peace talks Russia and Ukraine held in 2022.
“We propose the Kyiv authorities resume the negotiations they interrupted at the end of 2022… to resume direct negotiations… without any preconditions… to begin without delay next Thursday 15 May in Istanbul,” he said.
Speaking to Sky News Russia correspondent Ivor Bennett after the statement, Kremlin spokesperson Dmitry Peskov said Moscow does not “share the view of Starmer”.
“We think that the seriousness is to propose negotiations,” he said, denying the move was a delaying tactic.
Mr Peskov said there had to be negotiations to find a way for a ceasefire, adding: “A simplistic approach to a ceasefire is inappropriate.”
European leaders including Volodymyr Zelenskyy hold call with Donald Trump. Pic: Number 10
Russia’s own unilateral three-day ceasefire, declared for the 80th anniversary of victory over Nazi Germany, expired on Saturday, and Ukraine said Russian forces have repeatedly violated it.
After the summit in Kyiv, Sir Keir said: “All of us here, together with the US, are calling Putin out.
“So we are clear, all five leaders here – all the leaders of the meeting we just had with the coalition of the willing – an unconditional ceasefire, rejecting Putin’s conditions, and clear that if he turns his back on peace, we will respond.
“Working with President Trump, with all our partners, we will ramp up sanctions and increase our military aid for Ukraine’s defence to pressure Russia back to the table.”
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During Mr Putin’s statement on Sunday, he insisted he would support peace talks, adding: “We are committed to serious negotiations with Ukraine.”
He told reporters: “Their purpose is to eliminate the root causes of the conflict, to establish a long-term, lasting peace.
“We do not rule out that during these negotiations it will be possible to agree on some new truces, a new ceasefire.”
Read more:
Will Trump force Putin to comply with ceasefire?
Russia’s VE Day parade felt like celebration of war
Michael Clarke Q&A on Ukraine war
Ukraine and Russia argue over ceasefire breaches
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Responding to Mr Putin’s proposal, Mr Macron said the Russian leader was “looking for a way forward, but he still has a desire to buy time”.
Mr Putin’s proposed negotiations are “a first step, but they are not sufficient,” he told French broadcaster BFM.
“An unconditional ceasefire is not preceded by negotiations, by definition.”
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