At a time when government is investing more into childcare, parents are struggling to keep their children in nurseries and are pulling them out to save money.

According to, the Daycare Trust states that 70% of employed women with dependent children use informal childcare by friends, neighbours or family including grandparents for all or part of their childcare needs.

This move from nurseries to informal childcare is having a knock on effect on the childcare industry, as nurseries are increasing their childcare fees to break even. An increase in the number of staff being laid off or hours being cut last year has also been reported.

Part of this dilemma is said to be caused by the amount nurseries are paid by subsidised childcare programs, that help low-income families pay their child care fees. It has been reported that the amount some nurseries receive to pay for the state funded hours does not even cover their costs.

Also due to the absence of a reasonable childcare policy and an increase in the cost of nursery placements of 6% in the last year, a lot of mothers are making the decision not to return to work after having children.

Danny Alexander, the Chief Secretary to the Treasury, told Sky News that the Government would set out plans in the next few weeks to increase support for childcare and signaled that there will be “a little bit more public money” available.

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