According to a report published by a children’s savings provider, in Britain today, a parent paying for 25 hours of care a week can expect to pay £4,993 a year, a sum which is equivalent to 18.9% of average earnings.

Family Investments has published an analysis of local childcare costs and affordability in Great Britain following a survey of local authorities and official earnings data. This was used to establish affordability within every county. Results have been mapped against urban areas to highlight wide local variations in care affordability.

The national picture of childcare costs

There are however “significant” disparities in childcare costs at a local level, says the report. Stoke in the West Midlands was found to be the most affordable urban area and a parent paying for 25 hours care a week would need to set aside just 13.7% of their income or £2,925 over the course of the year.  By contrast, care costs in Ebbw Vale, South Wales are equivalent to 28.2% of a parent’s earnings or £5,539 a year.

The West Midlands was found to be a hotspot for childcare affordability. Four of the ten most affordable urban areas are located in the region. The North West of England also featured prominently with three of the most affordable locations in the top ten with Bolton ranked third overall.

Neath in West Glamorgan is the most affordable location in Wales and while Scotland did not feature in the top ten, Galalshiels in the Borders ranked 12th overall with a parent needing to set aside 16.5% of their earnings to cover care costs

Commenting on the findings, Kate Moore, Head of Savings and Investments at Family Investments said, “Childcare has emerged as an important policy issue in recent months but the debate so far has focused on the national picture. The lack of correlation between local earnings and childcare costs highlighted in our report is stark.

“Regardless of whether a parent works as a result of financial necessities or because of lifestyle considerations, employment should offer parents the ability to provide a financial safety net for their family. At a time when the overall financial burden parents face is increasing, employment should allow them the ability to save towards the future and provide for some of life’s major costs such as higher education. It is therefore only reasonable that care costs are fair and allow parents to achieve this.”

Families relocating within the UK will be interested to compare the average costs of childcare across the regions in England, Scotland and Wales:

The 10 most and least affordable urban areas in the country, according to the report: