New research has revealed the significant financial burden faced by UK working parents during the summer holidays, with childcare costs soaring by an average of £1,683 per month.
This increase in expenses is forcing many parents to reconsider their work options, with some unable to stay in employment due to the lack of flexible working arrangements.
The survey by the Phoenix Group highlighted that over two-fifths (41%) of working parents experience a steep rise in childcare costs during the school holidays. Younger parents, aged 18-34, are particularly hard hit, facing an average increase of £2,218 per month, which represents a substantial 67% of their average monthly household income. With the average monthly household income in the UK standing at £3,277, the financial impact is profound, covering over half (51%) of the average household’s monthly income.
The research also underscored 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 work options during the school holidays. Despite this, nearly two-fifths (38%) of working parents have been denied the ability to work flexibly during these periods, and 39% feel they cannot work because they are unable to find a job that accommodates their childcare needs.
Catherine Sermon, Head of Public Engagement and Campaigns at Phoenix Insights, emphasised the importance of flexible working in enabling parents to manage childcare effectively: “Flexible working arrangements can be powerful in enabling working parents to effectively manage their childcare responsibilities during the summer. However, as childcare costs rise sharply during the summer holidays, parents face financial pressures that may push them to choose between working or caring for their children.”
Sermon further noted that the ability to work flexibly is crucial in addressing the under-saving crisis in the UK, particularly for women who are more likely to leave the workforce due to caring commitments. This extended time out of the workforce can exacerbate pension shortfalls, leaving millions vulnerable to financial hardship 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. Additionally, over half (55%) of parents indicated they would benefit from the ability to work remotely during school holidays, yet many are not afforded this option.
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Working parents face additional £1,683 monthly childcare costs during summer holidays