Childcare costs are prohibitive for some parents

A report by Aviva, an insurance company, shows that childcare costs are prohibitive for some parents, and that it may be more cost-effective in these cases (especially for part-time workers) not to work. Aviva’s Family Finance Report is based on a survey of 6,000 families. It concludes that 32,000 women had left the workforce during the last year because their income had been “eroded by the associated costs of working”, including childcare (averaged at £385 per month), other child-related expenses (such as clothes and sporting activities) and transport costs. The report says that “the average woman with two children (one year and seven years old) would be out of pocket by £98 per month if she worked part-time, and better off by just £120 per month if she worked full-time”.

Aviva’s latest Family Finance Report may be accessed here.

Source: BBC News, 31 August 2011