PARENTS WITH SEPTEMBER BABIES COULD BE SPENDING OVER £20,000 MORE ON CHILDCARE FEES

New research has revealed the true scale of nursery fees across the UK, with some parents paying up to £20,269 extra per year, depending on the month when their child is born.

The Nursery Fees Report, produced by the UK’s leading IVA provider, Creditfix, found that parents who have a child in late July or August could save thousands of pounds compared to if their child is born in September.

The Creditfix research highlights the premium that parents may have to pay if their child is born earlier in the academic year, with September 26 the most common birthday across the UK, according to the ONS.

Children born in the summer months often start school just after their fourth birthday, but those born in September have to wait until they’re almost five-years-old to go to school.

Creditfix analysed hundreds of nursery day fees across the UK to paint a clear picture of the national childcare cost crisis. It revealed that for children born on 1 September, parents in the UK could spend an average of £13,909 on childcare in the year before they go to school - as opposed to £876.22 if they’re born on 1 August.

This assumes the child is at nursery full-time, not including weekends or bank holidays. However, some parents may be able to secure 30 hours free funding per week at nurseries depending on their income and child’s age, which would reduce this figure.

The number rises in Scotland, where the cut-off birthday for kids going to school is 28 February. The average extra parents can expect to pay if their child is born on 1 March is £13,407.

The figure follows new data from Creditfix that reveals the average debt level for parents with children under the age of five is £16,570 - higher than the national average of £15,998. This is according to an analysis of 143,304 Creditfix customers seeking IVAs and Trust Deeds.

Almost half of Creditfix customers (47.9%) are parents to children aged 18 and below, with the average debt level for parents rising further to £17,402 - almost £1,500 higher than the national average.

Creditfix also shone a light on the average cost of nursery fees for parents across the UK. While the average day rate is £54.76 - or £276 per week nationally, rates differ across the country, with southern areas most expensive.

Harrow had the highest fees overall, with parents paying an average of £85.17 per day to send their children to nursery, followed by Stevenage (£76.04), Woking (£74.20), High Wycombe (£69.78) and Bristol (£67.52).

In Harrow, fees were so high that parents could be handing over £20,269 more if their child is born in September compared to the August before the school term starts.

St. Helens in Merseyside had the most affordable day rate for parents at an average of £37.90 per day. Other Northern and Midlands areas also fared cheaper overall, including Oldham (£42.97), Middlesbrough (£43.15), Stoke-on-Trent (£43.31) and Chesterfield (£43.63).

The average amount of money parents are likely to spend on nursery fees depending on when their child is born:

Child’s birth date	Nursery cost for child turning 4-years-old before starting school
1 September	£13,909.16
1 October	£12,702.42
1 November	£11,627.90
1 December	£10,352.28
1 January	£9,145.42
1 February	£7,928.96
1 March	£6,845.37
1 April	£5,585.82
1 May	£4,498.60
1 June	£3,230.06
1 July	£2,026.13
1 August	£876.22

Layla Johnson, regional manager at Creditfix, commented on the research:

“Childcare costs, along with other everyday expenses, have spiralled in recent years, especially for parents with children attending nursery almost every working day of the year. Parents should feel confident that they can go back to work without having to worry about making a financial loss, or just about breaking even. Parents can check the government website to find out if they are able to secure 30-hours free childcare per week, depending on the childcare provider and your eligibility.

“As millions of households struggle with the cost of living crisis, we have conducted this research to highlight the disparity of just how much extra parents may have to budget for, depending on when their child is born.

“Of course, it’s difficult to be able to plan exactly the date, month, or even year when you do have a child, but if you do have the flexibility or luxury in deciding when to conceive, parents who give birth in the summer months may save financially.”

Parents can explore how much they may have to spend on childcare after their child turns four-years-old with Creditfix’s new calculator, which you can see here: https://www.creditfix.co.uk/blog/how-could-your-childs-birth-day-affect-your-personal-finances/

Readers can see the full research, with regional breakdowns, here: https://www.creditfix.co.uk/blog/how-could-your-childs-birth-day-affect-your-personal-finances/