Money worries | Parents sacrificing work & savings due to childcare costs, survey shows

Almost three in 10 (29%) adults with a child under five have reduced their working hours or left work because of the cost of childcare, new research reveals.

And the figure is even higher for working mothers, compared to dads, with a ratio of 43% to 15%. Over a third (34%) of this group say the cost of childcare has stopped them from saving for their future.

There are the concerning findings of Phoenix Group, a UK long-term savings and retirement business. Their research found a quarter (25%) of adults with a child under five have reduced their working hours due to childcare costs, and a further 4% have left work entirely. This is resulting in longer term consequences for parents’ retirement saving, as pension contributions decrease or are paused during time away from work.

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The research was carried out ahead of the first phase of the government’s childcare support package coming into effect. From April 2024, working parents of two-year-olds will be eligible for 15 hours of free childcare support per week, over 38 weeks of the year.