Parents Racking Up Debt to Cover Childcare Costs

March 8, 2019

Parents of young children around the UK are increasingly feeling the financial squeeze associated with paying for their little ones to be looked after by nurseries, childminders or nannies.

For a growing number of people the situation is leading to mounting debt problems that could take a considerable amount of time and effort to overcome.

According to research carried out by the credit report company, a quarter of British parents now rely on debt to cover the costs of having their pre-school age children looked after.

Among those people who use credit to pay for childcare, the average debt being amassed in relation to these services was found to be £9,220 per family.

Issues around childcare costs tend to abate once children reach school age as parents no longer need to pay for nurseries, childminders or nannies but the effects from a financial perspective can be significant and long lasting.

Indeed, the polling by suggests that people who rely on credit to cover childcare costs take an average of 16 months to pay off the associated debts they’ve accumulated.

A significant majority of over 70 per cent of the parents asked recently about these issues said that they’d noticed childcare costs increasing over the course of the past year.

On average, working parents pay just in excess of £1,000 per month to have their children looked after by professional service providers, according to the recent research.

Inflation, wage demands and uncertainty associated with Brexit were cited by childcare professionals as being reasons why their costs have been on the rise.

“Parents might not be putting childcare bills on credit directly, but a significant number rely on credit during these years as childcare costs put strain on their disposable income,” explained Jacqueline Dewey from

“Any financial planning before having a child should take into account your credit score. Parents with a good credit score should be able to secure better rates and therefore pay less to use credit over the long-term.”

Whether you’re a parent or not, if you live in Scotland and you’re struggling to cope with your personal debts then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation.

John Baird

Insolvency Adviser

Tel: 0800 063 9250

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