The cost for a full-time nursery place for a toddler under two has risen by nearly 6.4 per cent over the past year.

Childcare costs are already among the highest in the world in the UK, and now 96 per cent of nurseries are preparing to raise fees as a result of the Government's increase in employer national insurance contributions (NICs).

One in seven nurseries nationally believe they will lose money this year as a result of tax increases, according to a National Day Nurseries Association (NDNA) poll of 730 facilities.

Higher NICs will require nurseries to hike fees by an average of 10 per cent, making childcare in the UK even more expensive for many parents.

According to the NDNA, the government will cover 80 per cent of childcare costs in England starting in September, but they are "unwilling" to pay a reasonable amount.

The NDNA estimates that while nursery staffing expenses will rise by an average of 15 per cent, childcare funding rates will only rise by an average of four per cent.

In a statement, Purnima Tanuku, the chief executive at NDNA said: "Simply put, if the sector's most significant customer is not paying their fair share, nurseries have to find this money from somewhere else or close their doors."

But what is the average cost of childcare in England and how does that compare with other countries?

What is the average cost of childcare in England?

The average cost of childcare in the UK for children under two years old is GBP159.61 per week (part-time) or GBP305.11 per week (full-time), according to Coram.

Cost of part-time care is up 7.7 per cent from GBP150.89 a week in 2023, while full-time care has increased by 6.4 per cent from GBP146.00 in 2023.

What is the cost of childcare in other countries?

The UK is the third-most expensive country for childcare in the world, based on a couple earning the average wage, according to data from the OECD.

The only countries that are more expensive are Switzerland and New Zealand.

For couples earning 67 per cent of the average wage, the UK is the most expensive country for childcare, alongside the Czech Republic and Cyprus.

For couples earning the minimum wage, the UK is the second-most expensive country, after the Czech Republic.

Nordic countries are considered to be among the best countries in the world for childcare.

Childcare costs in Denmark are capped at 30 per cent of the actual cost - about GBP460 per month, according to the World Economic Forum.

In Norway, preschools charge a maximum of GBP200 per month. In Sweden, parents receive around GBP85 per month to help with childcare costs, which usually cost about GBP100 per month.

What is being done to reduce childcare costs?

The UK government is trying to cut childcare expenses by increasing the number of hours that are funded and offering other assistance, such free breakfast clubs.

Children of working parents in England between the ages of nine months and four years old are now eligible for 15 hours of free childcare or early education per week during term time, as of September 2024.

Working parents will be eligible for 30 hours of government-funded childcare per week by September 2025, which will cover 38 weeks of the year, from nine months until the child starts school.

A GBP204 million nursery cash boost was also announced in the 2023 spring Budget to increase funding for early years entitlements.

Where can parents get help with childcare costs?

Parents can get help paying for approved childcare from the Government, such as a childminder, nanny, playscheme, nursery, or club.

Parents may also be eligible for tax-free childcare, tax credits, Universal Credit, and help while studying. Find out if you are eligible for these benefits on the government website.

Parents of children aged two to four may be able to apply for free education and childcare. To find out if you're eligible, contact your local council.

Source: The Standard