A new study has revealed the huge financial burden faced by working parents in the UK during the summer holidays, with childcare costs rising by an average of £1,683 a month.
This increase in expenses is forcing many parents to reconsider their employment options, with some unable to stay in work due to the lack of flexible working arrangements.
The study by Phoenix Group highlighted that more than two-thirds (41%) of working parents are facing a sharp rise in childcare costs during the school holidays. Younger parents, aged 18-34, are particularly affected, facing an average increase of £2,218 per month, representing 67% of the average household’s monthly income. With the average UK household income standing at £3,277, the financial impact is profound, covering more than half (51%) of the average household’s monthly income.
The research also highlighted the challenges posed by a lack of flexible working arrangements. Many parents struggle to balance work and childcare, with 64% saying they would like more flexible working options during the school holidays. Despite this, nearly two-thirds (38%) of working parents are denied the ability to work flexibly during these periods, with 39% feeling unable to work because they are unable to find a job that meets their childcare needs.
Catherine Sirmon, Head of Public Engagement and Campaigns at Phoenix Insights, highlighted the importance of flexible working in enabling parents to manage childcare effectively: “Flexible working arrangements can be powerful in enabling working parents to manage childcare responsibilities effectively over the summer. However, with childcare costs rising sharply over the summer holidays, parents face financial pressures that may force them to choose between working or caring for their children.”
The ability to work flexibly is crucial to tackling the UK’s savings crisis, particularly for women who are more likely to leave the workforce due to caring commitments, Sirmon said. This prolonged time out of the workforce could exacerbate pension shortfalls, leaving millions vulnerable to financial hardship later in life.
The importance of flexible working is further demonstrated by the fact that 41% of those who currently have this option would consider leaving it if it was no longer available. Additionally, more than half (55%) of parents indicated that they would benefit from the ability to work remotely during the school holidays, yet many are not given this option.
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