Parents 'punished' by highest childcare costs in Britain

Families in Wales are being "punished" by childcare bills for under-twos that are more than double the average of those in England, Oxfam Cymru has said.

Parents in Wales with children who are under two do not receive any government help with childcare costs, whereas in England parents can claim 15 hours of free childcare a week for children aged between nine months and two years.

Children's charity Coram said nursery costs for under-twos were now more expensive in Wales than anywhere else in Great Britain.

The Welsh government said it had invested more than £100m a year to sustain and grow high quality childcare.

According to a survey by Coram, the cost of a part-time (25 hours per week) nursery place for a child under two in Wales is now £155.

In England, the cost of a part-time place - once the funded hours are taken into account - has fallen to £70.

"These are bills that many families simply cannot afford - and risk keeping parents locked out of the workplace," said Lydia Hodges, head of Coram Family and Childcare.

Sarah Rees, head of Oxfam Cymru, said the data showed families in Wales were "really being punished in comparison to the offers being provided to families who need childcare in England".

"People in England have access to childcare support for younger children – from nine months onwards – and that means their bills are practically half of what bills are for families in Wales."

The cost of childcare is why mum-of-three Katie Bromley feels she is not in a position to go back to work.

"Childcare costs have gone up," said Ms Bromley, who was with her one-year-old daughter at a Salvation Army baby and parent group in Tonypandy, Rhondda Cynon Taf, while her two older children were at school.

"Even with my husband working full-time every day it's still expensive and hard to get back into work.

"If I had more support I would definitely be looking for a job... so I can get a bit more freedom and find a job that could help me get back out there."

Mum-of-three Ffion Ryan said it was a "struggle" until children turned three, after which parents can claim financial help with childcare costs wherever they live in Wales.

"We're expected to go back to work after nine months and obviously it's a long time from then until three and that's when you need the help really," said Ms Ryan, a teacher from Llansannan in Conwy county who is currently on maternity leave.

Ms Ryan said she believed financial support towards childcare should be available at the point that maternity pay ends.

In the UK, statutory maternity pay ends at 39 weeks, or roughly nine months.

"If you're asking women to go back to work after nine months, then the help should be there," said Ms Ryan.

In England, working parents of children between nine months and two years can claim 15 hours of free childcare a week, which will be expanded to 30 hours for all under-fives from September 2025.

However, some childcare providers in England have expressed concerns about rising costs, leading to fears over a shortage of spaces.

In Wales, funded childcare is available for children aged two, three and four.

Under the Childcare Offer, parents and guardians of three and four-year-old children can claim up to 30 hours of free childcare each week, for up to 48 weeks of the year.

The Flying Start programme provides 12.5 hours of free childcare to two-year-olds in eligible areas. It is being rolled out gradually to all two-year-olds, prioritising the most disadvantaged.

Oxfam Cymru said it should be rolled out "much quicker" and that only 60% of families with two-year-olds had access to it so far.

But nursery owner Lisa Owen said she did not believe the childcare system could support free care for children from nine months, even though she agreed with the principle.

Ms Owen said the money which providers received from the Welsh government for delivering the Childcare Offer did not meet costs and had an impact on parents' bills.

"All of our costs have gone up," said Ms Owen, owner of Chuckles nursery in Newport.

"We have staff ratios to maintain so when costs go up, the only thing we can do is put charges up.

"The Childcare Offer unfortunately underfunds so we're losing money. To try to recoup those costs we've had to put our overall rates up which has a massive impact on the children two years and under."

She said the increase to nurseries' National Insurance bills added to problems.

"We're losing money hand over fist every day," she said, warning some settings were at risk of closing.

Childcare costs are likely to feature in the 2026 Senedd election campaign.

Plaid Cymru, which helped to secure free childcare expansion for two-year-olds as part of a 2021 deal with the Welsh government, said it wanted to "deliver an expanded, more affordable and seamless childcare offer in 2026".

The Welsh Liberal Democrat leader Jane Dodds, who helped to pass the Welsh government's budget last month which included an extra £30m towards childcare, wants 30 hours of free childcare for all pre-school Welsh children from nine months old.

The Welsh Conservatives said the consequential funding Wales received as a result of the UK government's increased childcare spending should be used "to replicate England's policy of 30 hours of free childcare for all under-fives".

The Welsh Labour government said it was focused on the most disadvantaged communities in the first instance.

"We are providing an additional £50m in 2025-26 for the further expansion of our Flying Start childcare scheme to two-year-olds, which will support more families, and to increase the hourly rate for the childcare offer to further support childcare providers," a Welsh government spokesperson said.