Working parents face extra monthly childcare costs of £1,683 during the summer holidays

New research has revealed the significant financial burden faced by British working parents over the summer holidays, with childcare costs rising by an average of £1,683 per month.

This increase in costs is forcing many parents to reconsider their work options, with some unable to continue working due to the lack of flexible working arrangements.

The Phoenix Group research shows that more than two-fifths (41%) of working parents experience a sharp increase in childcare costs during the school holidays. Younger parents, aged 18 to 34, are particularly hard hit; they face an average increase of £2,218 per month, which amounts to a significant 67% of their average monthly household income. With the average monthly household income in Britain being £3,277, the financial impact is significant, accounting for over half (51%) of the average monthly household income.

The research also highlighted the challenges posed by the lack of flexible working arrangements. Many parents struggle to balance work and childcare, with 64% expressing a desire for more flexible working options during the school holidays. Despite this, almost two-fifths (38%) of working parents have been denied the opportunity to work flexibly during these times, and 39% feel they cannot work because they cannot find a job that meets their needs childcare.

Catherine Sermon, Head of Public Engagement and Campaigns at Phoenix Insights, highlighted the importance of flexible working to enable parents to manage childcare effectively: “Flexible working arrangements can be powerful in enabling working parents to manage their childcare responsibilities during the summer effectively. But as childcare costs rise sharply during the summer holidays, parents are facing financial pressures that could force them to choose between working or caring for their children.”

Sermon further noted that the ability to work flexibly is crucial in tackling Britain’s under-savings crisis, especially for women who are more likely to leave the workforce due to caring commitments. This extended period of absence from the labor market could worsen pension shortages, leaving millions of people vulnerable to financial problems later in life.

The value of flexible working is further highlighted by the fact that 41% of those who currently have this option would consider quitting if it were no longer available. In addition, more than half (55%) of parents said they would benefit from the option to work remotely during the school holidays, but many are not offered this option.