New report finds childcare costs is plunging working families into poverty
Working families are being plunged into poverty due to childcare costs.
A report released by Citizens Advice Scotland (CAS) says childcare in Scotland is so expensive it is a "route to in-work poverty" for many parents.
It showed the average cost of putting a child aged between two and five in nursery for 25 hours a week was £5,307 a year - representing a rise of 8.2% in the past year.
The report also reveals the average cost of placing a child under the age of two in nursery for 25 hours a week is £5,514 a year.
Despite pledges by the Scottish Government to increase the amount of free childcare hours for parents, this is still short of what is needed, says the report.
Legislation was passed earlier this year to increase the amount of free childcare from 475 hours a year to 600 hours a year for three and four-year-olds, as well as for disadvantaged two-year-olds.
These issues of cost and availability are the two big, preventative barriers that stop parents from getting back to work
However the report states: "Despite the increase in the statutory guarantee of hours, a number of issues remain which must be tackled to ensure that Scotland's children get the best start in life and their families can avoid poverty through work.”
Parents in Scotland currently spend an average of 27% of their household income on childcare, compared with an average of 12% across OECD countries, said the report.
And childcare provision was reported to be "particularly inadequate" in many rural areas.
Citizens Advice Scotland policy manager Keith Dryburgh said: "Childcare isn't working for far too many families in Scotland. And many parents who want to work are unable to do so because they can't get childcare.
"The most frequently cited problems we see are the huge costs. But lack of availability is also a problem in many areas. This is particularly acute in rural and remote areas, but is felt across the whole country.
"These issues of cost and availability are the two big, preventative barriers that stop parents from getting back to work."
Aileen Campbell, minister for children and young people, said: "We agree that childcare costs are considerable outlay for most families and that is why we have already expanded annual funded early learning and childcare for three and four-year-olds to almost 16 hours per week and also extended this to the most disadvantaged two-year-olds.”
