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.
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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.
Image: 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.
What support is available?
Tax free childcare [all ages] for every £8 you pay in, the government put in £2
15 free hours for two-year-olds in England who are disabled or on certain benefits
15 free hours for all three and four-year-olds up to 38 weeks a year [10 in Wales]
30 free hours for three and four-year-olds with working parents for 38 weeks a year in England and Scotland [48 weeks in Wales]
Support for those on Universal Credit up to a maximum of £646 per child or £1108 for two
‘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.”
Image: 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.”
Giving a news conference in Downing Street, he said: “A Russian spy ship, the Yantar, is on the edge of UK waters north of Scotland, having entered the UK’s wider waters over the last few weeks.
“This is a vessel designed for gathering intelligence and mapping our undersea cables.
“We deployed a Royal Navy frigate and RAF planes to monitor and track this vessel’s every move, during which the Yantar directed lasers at our pilots.
“That Russian action is deeply dangerous, and this is the second time this year that this ship, the Yantar, has deployed to UK waters.”
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Mr Healey added: “So my message to Russia and to Putin is this: we see you, we know what you’re doing, and if the Yantar travels south this week, we are ready.”
His warning comes following a report from MPs that the UK lacks a plan to defend itself from a military attack, despite the government promising to boost readiness with new arms factories.
At least 13 sites across the UK have been identified for new factories to make munitions and military explosives, with Mr Healey expecting the arms industry to break ground at the first plant next year.
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The report, by the Commons Defence Committee, said the UK “lacks a plan for defending the homeland and overseas territories” as it urged the government to launch a “co-ordinated effort to communicate with the public on the level of threat we face”.
Mr Healey acknowledged the dangers facing the UK, saying the country was in a “new era of threat” that “demands a new era for defence”.
Giving more details on the vessel, he said it was “part of a Russian fleet designed to put and hold our undersea infrastructure and those of our allies at risk”.
Image: Russian Ship Yantar. Pic: Ministry of Defence
He said the Yantar wasn’t just part of a naval operation but part of a Russian programme driven by Moscow’s Main Directorate of Deep-Sea Research, or GUGI, which is “designed to have capabilities which can undertake surveillance in peacetime and sabotage in conflict”.
“That is why we’ve been determined, whenever the Yantar comes into British wider waters, we track it, we deter it and we say to Putin we are ready, and we do that alongside allies,” he added.
Asked by Sky News’ political correspondent Rob Powell whether this was the first time that lasers had been used by a Russian vessel against pilots, Mr Healey replied: “This is the first time we’ve had this action from Yantar directed against the British RAF.
“We take it extremely seriously. I’ve changed the Navy’s rules of engagement so that we can follow more closely, monitor more closely, the activities of the Yantar when it’s in our wider waters. We have military options ready.”
Mr Healey added that the last time the Yantar was in UK waters, the British military surfaced a nuclear-powered attack submarine close to the ship “that they did not know was there”.
The Russian embassy has been contacted for comment.
More than 250 passengers on board a ferry that ran aground off the South Korean coast have been rescued, according to the coastguard.
It said the Queen Jenuvia 2, travelling from the southern island of Jeju to the southwestern port city of Mokpo, hit rocks near Jindo, off the country’s southwest coast, late on Wednesday.
A total of 267 people were on board, including 246 passengers and 21 crew. Three people had minor injuries.
Image: All on board were rescued. Pic: Yonhap/Reuters
Footage showed passengers wearing life vests waiting to be picked up by rescue boats, which were approaching the 26,000-tonne South Korean ferry.
Its bow seemed to have become stuck on the edge of a small island, but it appeared to be upright and the passengers seemed calm.
Weather conditions at the scene were reported to be fair with light winds.
South Korea’s Prime Minister Kim Min-seok ordered all available boats and equipment to be used to rescue those on board, his office said.
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The coastguard received a report of the incident late on Wednesday, and immediately deployed 20 vessels and a plane to join the rescue effort.
It was not immediately clear what caused the vessel to run aground.
The vessel can carry up to 1,010 passengers and has multiple lower decks for large vehicles and passenger vehicles, according to its operator Seaworld Ferry.
In 2014, more than 300 people, mostly schoolchildren heading to Jeju on a school trip, died when the Sewol ferry sank.
It was one of the country’s worst disasters.
The ship went down 11 years ago near the site of Wednesday’s incident, though further off Jindo.
After taking a turn too fast, the overloaded and illegally-modified ferry began listing.
It then lay on its side as passengers waited for rescue, which was slow to come, before sinking as the country watched on live television.
Many of the victims were found in their cabins, where they had been told to wait by the crew while the captain and some crew members were taken aboard the first coastguard vessels to arrive at the scene.
The Yantar may look scruffy and unthreatening but below the surface it’s the kind of ship a Bond villain would be proud of.
In hangars below decks lurk submersibles straight out of the Bond film Thunderball. Two Consul Class mini manned subs are on board and a number of remotely operated ones.
It can “undertake surveillance in peacetime and sabotage in conflict”, in the words of Britain’s Defence Secretary John Healey.
Image: The Russian spy ship Yantar. Pic: MOD/PA
Cable-cutting equipment combined with surveillance and intelligence gathering capabilities make this a vessel to be reckoned with.
Most worryingly though, in its most recent tangle with RAF planes sent to stalk it, the Yantar deployed a laser to distract and dazzle the British pilot.
Matthew Savill, from the Royal United Services Institute, told Sky News this was potentially a worrying hostile act.
He said: “If this had been used to dazzle the pilot and that aircraft had subsequently crashed, then maybe the case could be made that not only was it hostile but it was fundamentally an armed attack because it had the same impact as if they’d used a weapon.”
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The Yantar is off our waters and here to threaten the West’s Achilles heel, says our government. Undersea infrastructure is essential to our hyper-connected world.
Undersea cables are the vital nervous system of Western civilisation. Through them courses the data that powers our 21st century economies and communications systems.
Pipelines are equally important in supplying fuel and gas that are vital to our prosperity. But they stretch for mile after mile along the seabed, exposed and all but undefended.
Their vulnerability is enough to keep Western economists and security officials awake at night, and Russia is well aware of that strategic weakness.
That is why some of the most sophisticated kit the Russian military possesses is geared towards mapping and potentially threatening them.
The Yantar’s concealed capabilities are currently being used to map that underwater network of cables and pipelines, it’s thought, but they could in the future be used to sabotage them. Russia has been blamed for mysterious underwater attacks in the recent past.
A more kinetic conflict striking at the West’s soft underwater underbelly could have a disastrous impact. Enough damage to internet cables could play havoc with Western economies.
It is a scenario security experts believe the West is not well enough prepared for.
Putting the Yantar and its Russian overseers on watch is one thing; preventing them from readying for such a doomsday outcome in time of war is quite another.