A parent from Harrogate has raised concerns that the growing cost of living, including childcare fees, could see children put at risk.

The mum, who asked us not to use her name, said rising fees were putting pressure on household budgets as they also faced increased costs for mortgages, fuel and more.

As an NHS nurse, whose partner is in the police, she said she had little money left each month after bills were paid – and now she faces a further rise in nursery fees from January.

She said:

“Even we are struggling on fairly decent wages. I have considered taking my son out of nursery, but we don’t have much alternative – my mum has got health needs and I want to know his needs are being met.

“If I’m considering that on the wage that I’m on, what are other people considering?

“We aren’t paid any more – how are we supposed to afford all of these rises without going bankrupt?”

With a take-home monthly pay packet of £1,700 from her full-time role, the mum said she already pays more than £550 a month on childcare, and her mortgage has recently risen by £200 a month. She also pays for business insurance on her car to be able to do her job, and often buys equipment out of her own pocket because NHS budgets are so stretched.

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She also said she worried that families facing growing costs might decide to remove their children from childcare, even after accessing funded hours on government schemes.

Not only could they potentially be left somewhere unsafe or unregistered, such as with an older sibling or family friend, but their contact with professionals would also be delayed and any early warning signs not spotted.

She added:

“From a safeguarding perspective, the reason those [funded] hours have been brought in is because the ages of nought to five are the most vulnerable time in a child’s life, where they are more likely to experience significant harm or death.

“If children are in nursery, parents get that break. If they don’t get that break, we’re putting pressure on people. But if they’re not in childcare, nothing is going to get pocked up until those children start school or end up needing medical care.”

Her son is at Nature’s Little Learners nursery in Starbeck, where he is entitled to 30 hours’ free childcare funded by the government. That provision is given to working parents of children aged three and over and only applies during term-time, so is used by many pro-rata across the full year.

Difference in costs

However, the owner of the nursery said the money paid through North Yorkshire County Council for those funded places was significantly below the cost of offering them.

Sam Williams said parents would pay £62.50 for a full day’s nursery, from 8am to 6pm, from January. By contrast, the money paid to the nursery through the funded hours scheme was just £43.10 per day.

As a result, most nurseries charge a fee to cover extras, such as food and equipment. Nature’s Little Learners had been charging £8 per day for this, but from January will charge £19.40 to cover the difference in costs.

If it did not do so, she said, it would not be able to continue offering childcare.

Other nurseries around the UK have been forced to close their doors as a result of rising costs. Ofsted data for April 2021 to March 2022 showed there was a net decrease of 4,000 childcare providers.

Ms Williams said:

“All businesses have their own operating cost. This will be different for each unique setting. When deciding on the daily rate at Nature’s Little Learners for 2023, we have taken into consideration staffing cost, training, rent, rates, utilities, food costs, resource cost, travel, recruitment cost etc.

“We understand that families need to be able to afford childcare in order for them to go to work, and without working families we wouldn’t have a nursery.”

Ms Williams said the nursery had introduced flexible timings for families who did not need childcare from 8am or until 6pm, allowing them to pay less and use only the hours they needed.

As a result, the nursery’s staffing costs would be lower during those times. She said while staffing was the highest cost for any nursery, there were also growing pressures with rising costs which childcare providers were facing.

She added:

“We have considered that this coming year is set to be challenging for families as well as businesses. We appreciate the financial pressures that families are currently facing, and to minimise the impact of another increase to families’ expenses, we have attempted to amend our sessions, and offer a more flexible approach instead of an increased fixed daily rate.

“We are thankful for all our families who have support the introduction of the new session times and prices and really appreciate everyone’s words of kindness.”