When Jessica Gabrielson first started working in childcare, she knew she had found her passion. But 25 years later, she is now being forced to cut her hours because she can’t afford her own two-year-old son’s nursery fees.
Jessica, from Liverpool, qualifies for 30 hours of free childcare and tax-free childcare, but still pays £95 per week in nursery fees, which quickly eats into her £200 to £300 weekly income.
She is an agency worker who is put on placements in nurseries and sometimes primary schools. This means her pay and place of work are subject to change and she has to budget extra carefully to ensure she can afford food, bills and travel costs to get to and from work.
“My son was doing three days a week at nursery, but even with both free hours and tax-free childcare, I’m still paying hundreds of pounds a month and I can’t afford it any more. Going forward, I’m having to drop a day of work so he will only attend two days,” said Jessica, 42.
“It’s stressful because I need childcare to be able to work, but my pay doesn’t always cover the childcare costs. The nursery bill at the end of each month just strangles my finances, so I need to cut my working hours. It’s a sad state of affairs.”
Jessica had been planning to have a second child, but has decided she can’t afford to have another because of the cost of childcare.
“I’d love to have another baby, but financially it feels like too much of a risk. That’s probably the hardest part – feeling like something so important to me isn’t possible because of money.
“I didn’t expect it to feel this financially stressful after having a child. I’ve always loved working in childcare, but now there’s this constant financial pressure.”
Jessica is one of millions of parents who have had to cut their working hours because of the cost of childcare.
Working parents may be eligible for up to 30 hours of funded childcare for children aged between nine months and four years old, while tax-free childcare offers up to £2,000 per year per child.
But many parents are still finding they owe hundreds or even thousands of pounds a month, even after taking advantage of these schemes.
A recent survey by Working Families found that one in three working parents have reduced their hours due to childcare costs, while almost a third have requested flexible working hours to avoid paying extra fees.
A separate study by Junior Adventures Group, a care provider, found 50 per cent of parents feel the cost of care has impacted their ability to work in some capacity.
Tamsin Powell, consumer finance expert at Creditspring, said agency or frontline workers like Jessica often feel this pressure more acutely because their income and expenses can change at short notice.
“If you are dealing with shift-based travel, childcare overruns or higher day-to-day spending before payday, even a temporary gap [in income] can become difficult to manage,” she said.
James Caldwell, director at Clifton Private Finance, said this is a big problem if this it results in those parents cutting their hours, as they are often some of the most in-demand workers.
“What’s particularly concerning is that affordability is now influencing whether parents can stay in work at all. When childcare costs start to rival or even exceed take-home pay, reducing hours or leaving work altogether becomes a financial decision rather than a lifestyle choice,” he said.
Why is childcare still so expensive?
Despite a range of help on offer to reduce childcare costs, including government-funded nursery hours and tax-free childcare, many parents are still finding they’re facing big bills every month.
Mr Caldwell said this is because the support currently on offer “comes with limits” and there are often extra expenses that aren’t covered.
“One of the biggest misconceptions is that ‘free hours’ means free childcare. In practice, those hours are usually limited to term time, and parents are still paying for additional hours, wraparound care, and extras like meals or activities,” he explained.
“Many nurseries simply don’t receive enough from the government to cover their costs, which is why we’re seeing rising fees, fewer funded places, and long waiting lists, and that pressure is ultimately being passed directly onto parents.”
He also highlighted that while lower-income households or agency workers may be on a tighter budget, it is often the ‘squeezed middle’ who feel the biggest financial burden of childcare, as they lose government support and have to fund it all themselves.
“With support tapering off for higher earners and cutting out entirely above £100,000, many households still end up covering a substantial share of the costs themselves,” he said.
How to apply for childcare help
If your child is between nine months and four years and you work, you can typically get up to 30 hours of free childcare each week for 38 weeks per year.
You may be asked to pay for some extras like meals or nappies, but you should be able to provide your own instead if you can’t afford it.
You’ll be eligible if you earn at least £203.36 per week, if you’re over 21, and you or your partner earn less than £100,000 per year. Visit gov.uk/free-childcare-if-working/apply-for-free-childcare-if-youre-working to apply online.
You can also apply for tax-free childcare online. You’ll need your National Insurance number, the birth certificates of any children you are applying for, and the date you started work. You must also include your partner in your application if you are married or live together.