Having a kid feels ‘like financial suicide’ as more parents take on debt to pay for childcare – report says

Published

2 months ago

February 18, 2024

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Having a child “feels like financial suicide” for parents, the head of a charity has said, after a study found more Britons are taking on debt to pay for childcare.

Commissioned by campaign group Pregnant Then Screwed, the survey said almost half of parents of under-fives in England say they have taken financial blows as the cost of childcare bites.

Speaking after the study was released, the charity’s founder Joeli Brearley said that as well as a cost of living crisis, “we’ve got a cost-of-working crisis that disproportionately impacts mothers”.

She said many parents who want to have more children “cannot afford to do so”, and added: “Being a parent is tough enough, but when having more children means sacrificing your income, procreation feels like financial suicide.

“If we aren’t careful, becoming a parent will be a luxury item, and the economy can’t afford to pay that price.”

The government’s Money Helper website says on average, the cost of sending a child under the age of two to nursery full time is now £269.86 a week, or £14,030 a year.

Around 46% of parents told the charity they have gone into debt or raided their savings to raise their children, up from 35% in last year’s survey.

Polling also found that around 70% of mothers agreed that “after paying for childcare it doesn’t make financial sense” for them to go to work. Half of the fathers surveyed felt the same.

It comes after it was announced last year that from April, eligible working parents of two-year-olds will be able to get free 15 hours of childcare support. From September, the 15 hours will be extended to parents of children aged nine months to three years.

The government hopes that by September 2025, all eligible working parents with children aged nine months and up will be able to access 30 hours of childcare a week.

But the survey also found that 90% of parents do not believe the government’s promise that childcare costs will reduce.

Other findings included 37% of parents saying they had to use credit cards, take out a loan or borrow money from family or friends to pay for childcare.

More than a fifth of parents, 22%, also said they had to withdraw money from savings or their pension.

The study used a final sample of 5,870 respondents, which were randomly selected from a pool of 35,800 survey respondents.

Politics

DOJ challenges motion to dismiss Tornado Cash co-founder’s charges

Published

13 hours ago

April 28, 2024

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DOJ challenges motion to dismiss Tornado Cash co-founder’s charges

According to the filing, the DOJ criticized Tornado Cash’s co-founders for inadequate changes to exclude sanctioned addresses.

Politics

Google Cloud’s Web3 portal launch sparks debate in crypto industry

Published

16 hours ago

April 28, 2024

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<div>Google Cloud's Web3 portal launch sparks debate in crypto industry</div>

Google Cloud recently launched a Web3 portal with testnet tools, blockchain datasets, and learning resources for developers, receiving mixed reactions from the crypto industry.

Politics

Rishi Sunak does not rule out July general election – but insists ‘there’ll be a clear choice’ when it comes

Published

18 hours ago

April 28, 2024

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Rishi Sunak does not rule out July general election - but insists 'there'll be a clear choice' when it comes

Rishi Sunak has failed to rule out holding a general election in July, as speculation remains rife over the timing of the national vote.

The prime minister has repeatedly said his “working assumption” is the election would take place in the second half of this year – with the law stating January 2025 is the latest he could call it.

But while many commentators have predicted an autumn vote, Sky News’ Trevor Phillips put to Mr Sunak that it could mean as early as July.

Analysis: Sunak needs to learn voters aren’t always governed by the logic of the computer

“Well, look, when it comes to a general election, I’ve been very clear about that multiple times,” the prime minister said.

“And again, I’m not going to say anything more than I’ve already said, I’ve been very clear about that.”

In his interview – which will air in full on Sunday at 8.30am – Trevor Phillips pushed Mr Sunak five times over whether he would rule out a July general election, but the Conservative leader refused to confirm or deny if it could take place then.

“You’re going to try and draw whatever conclusion you want from what I say,” he said. “I’m going to always try and say the same thing. You should just listen to what I said, [the] same thing I’ve said all year.

“But the point is… there’s a choice when it comes to the general election. And look, over the past week or so… the country can have a very clear sense of what that difference is going to look like.”

Outlining his recent commitments to overhauling the welfare system, cutting taxes and increasing defence spending, as well as finally getting his Rwanda bill through parliament in an effort to tackle small boat crossings, Mr Sunak said: “That is the substance of what this government is about and what it’s going to do in the future.

“And when the election comes, there’ll be a clear choice, because the Labour Party has tried to frustrate our Rwanda bill, because they don’t believe in stopping the boats, their economic plan will put people’s taxes up.

“They haven’t said that they will invest more in our defence and they certainly don’t agree with reforming our welfare system to support people into work.”

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Labour has said it wants to match the hike in defence spending when the financial circumstances allow, and has promised to scrap the Rwanda bill if it gets into power.

This week, its pre-election focus has been on railways, promising to renationalise train operators and “sweep away” the current “broken” model if the party wins the next election.

Watch Rishi Sunak’s full interview on Sunday Morning with Trevor Phillips at 8.30am