Half of single parents in debt over childcare costs

By The Press Association11th March 2015News EnglandChildcare, Families, News England

Half of single parents have had to borrow money to pay for childcare amid fresh warnings that it doesn’t make financial sense for many to work more hours.

Gingerbread, which campaigns on behalf of single parents, said the price of childcare meant the idea that work was the best way out of poverty was “far from a reality” for many.

A new report said a poll of 1,700 single parents showed that half have had to borrow money from friends, family or banks to pay for childcare in the last two years.

Gingerbread said a decade-old cap on the childcare costs parents can claim back meant that, even with extra help set to be rolled out under universal credit, increasing support from 70% to 85% of costs, for many single parents it still won’t make financial sense to work more hours.

Single parents facing very high childcare costs, such as those living in London and the south east, will be worse off if they move from part-time to full-time work, said the report.

Although low-income parents will be able to claim up to 85% of costs under universal credit, this is still capped at a limit which has remained unchanged since 2005 – £175 for one child and £300 a week for two or more children.

Gingerbread chief executive Fiona Weir said: “Childcare costs are putting single parent families under severe financial strain. Childcare just isn’t affordable for many and it is very worrying that single parents are having to turn to friends and family banks and credit cards to try and cover costs.

“We welcome Government plans to increase the amount of support available, but the cap on costs means too many single parents will see little benefit.

“The Government must honour its commitment to make work pay and swiftly bring in extra financial support – parents can’t afford to wait any longer.”

Gingerbread made a series of recommendations, including prioritising childcare support for low-income families.

“We want to see politicians deliver on the promise to make work pay, ensuring the problems faced by single parents for whom childcare remains a significant barrier to entering and progressing in work are resolved.

“With a new government in 2015 and a cross-party consensus on the importance of tackling the childcare challenge, now is the time to create a childcare system that works for all.”