London has the fourth-highest childcare costs in the UK, with parents paying an average of £1,833.38 a month for private full-day preschool or kindergarten, according to new research.
The study, by outdoor play equipment manufacturer Outdoortoys, analysed childcare costs across the country and found only Plymouth, Luton and Cambridge had higher average monthly fees than the capital.
For many London families, childcare is one of the biggest household expenses alongside housing costs, with parents paying more than £22,000 a year for one child’s full-time preschool or kindergarten place.
The cost of childcare has become an increasingly important issue nationally as families continue to navigate rising living expenses.
While government-funded childcare schemes have expanded in recent years, like the Free Childcare for Working Parents scheme which was broadened to cover up to 30 hours of free childcare just last September, many parents still face substantial costs depending on their child’s age, the number of hours required and the availability of local places.
Ahead of the general election in 2024, a report from the Early Education and Childcare Coalition (EECC) found that 42% of voters considered childcare and education policy as key in their decision of how to vote.
London’s large working population also means demand for full-time childcare remains particularly high. It has become a necessity for family households in the city to rely on two incomes to meet the London’s high living costs, increasing the need for formal childcare throughout the working week.
The figures also mirror findings from numerous studies in recent years that have placed London among the UK’s most expensive locations for everyday essentials, from rent and housing to transport and childcare.
For many parents, nursery fees can rival or even exceed monthly mortgage or rental payments, making childcare a defining factor in decisions about relocating.
The above chart shows the top 10 most expensive places for childcare in the UK. Plymouth recorded the highest childcare costs in the UK at £2,000 per month per child. Luton and Cambridge shared second place, with average fees of £1,930.57, while London ranked only fourth at £1,833.38.
Certainly not making the top 10 was Bradford, identified as the UK’s cheapest location for childcare, with average monthly fees of a striking £605.84 – roughly a third of what Londoners pay – but also ranked the second most ‘challenging’ place to raise a child, indicating that the cheap childcare costs do not compensate for the potential problems that arise from raising a child in the city.
First in that category was Manchester, with research pointing to crime rates of 145 incidents per 1,000 people as the biggest contributing factor.
The Outdoortoys study also examined factors beyond childcare, including access to green space and safety, to determine the best places in Britain to raise children overall.
Sheffield ranked first overall, largely because of its abundance of outdoor space. The city provides an average of 1,686 square metres of green space per person, almost double the study average of 873 square metres.
Alex Price, a representative from Outdoortoys, said: “Where children grow up has a lasting impact on how they spend their time. When there’s somewhere nearby to play, children tend to spend more time being active and independent. Over time, that builds confidence, social skills, and a sense of freedom that’s much harder to develop when outdoor time is limited or heavily planned.”
While London did not appear at either end of the overall rankings, its childcare costs remain among the highest in Britain despite being named the second best city in the world to live by TimeOut magazine just last year.
Whether the financial implications will deter new parents from raising their children in the capital is a matter we’re yet to see.
Featured image credit: Benjamin Davies via Unsplash
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