Free nursery childcare needed as costs rocket, says TUC

All parents should be given access to free high-quality nursery childcare, the general secretary of the Trades Union Congress (TUC) has said.

Frances O'Grady said nursery fees were "going through the roof, as wages stagnate" and action was required.

An estimated 1.7 million women in England are prevented from doing more hours of paid work by childcare issues.

The government says it has spent more than £4bn a year for the last five years on childcare provision.

Currently parents of three and four-year-olds in England are offered 30 free hours of childcare a week, and those eligible for Universal Credit can reclaim up to 85% of their childcare costs, up to a maximum of £1,108 a month.

• How expensive is childcare in the UK?

• Summer childcare costs so high 'I'd be paying to work'

Tax free childcare is also available to working families across the UK, including the self-employed, earning under £100,000 and at least £152 per week.

But the TUC describes the government's offer as "underfunded", citing the UK spending less than 0.1% of its GDP on childcare.

Labour fought the 2019 general election on a promise of free universal childcare, but this is not currently party policy.

In an interview with the London Evening Standard, shadow education secretary Bridget Phillipson said childcare would be "completely transformed" if Labour won power.

The party would offer "comprehensive support from the end of parental leave right to the end of primary school", and end the "piecemeal" system now in place, she added.

'Huge stress'

The TUC said the lack of affordable childcare put "significant financial strain on families" that could impact parents' ability to work.

Previous TUC research found that one in three working parents with children of pre-school age spent more than a third of their pay on childcare.

Ms O'Grady told BBC News: "Nursery fees are going the through roof, as wages stagnate.

"We can't carry on like this. Pre-school childcare should be free across Britain. And we need a proper workforce strategy from the government."

The cost of full-time childcare for parents in England with children under two has increased by nearly £3,000 since 2013, according to the TUC - from £11,285 to £14,226.

The government has proposed changing the minimum staff to children ratio for two-year-olds from 1:4 to 1:5, saying this will reduce costs.

'Not taking it up'

But the TUC argues cutting staffing ratios "isn't the answer, as it would simply put more pressure on our already overstretched, underpaid and undervalued childcare workers".

It is calling on the government to provide better pay and conditions for childcare workers, including a higher minimum wage for the sector.

Across the UK, nearly one million eligible families have not taken up their right to tax-free childcare, which is worth £2,000 a year or £4,000 for children with disabilities.

In July 2022, then Minister for Children and Families Will Quince said: "We know there are thousands of parents who are eligible for government support but not taking it up.

"That's why we want to increase awareness of the existing childcare offers, allow providers to provide services more flexibly and make sure funding gets where it is needed most."