Childcare Costs

Costs of childcare are between 25 and 33 per cent higher in London than for GB as a whole, with the gap having widened for 2023. The picture is complex, with considerable variation by age of child, type of setting and the number of hours required. The data suggest that the costs for all settings for pre school age children have increased over the last year in London, while after school care prices have been more stable. Changes to the government funded places for particular age groups and for different criteria further complicate the picture. The Covid -19 pandemic has led to an overall reduction in the provision of childcare places as well as a reduction in the hours offered by some providers. This fall is an ongoing issue, with far fewer places than required, particularly for under 2 year olds in Outer London. Due to financial and other pressures, such as availability of qualified staff, availability and quality of childcare are at further risk.