Childcare in the UK is far more expensive than most other European countries, including France (7 per cent of average income), Poland (8 per cent), and the Netherlands (11 per cent).
From September 2024, the government began partially funding childcare for children aged 9 months to 2 years old, with 15 hours of free childcare a week; while children aged 3 and 4 years old can be eligible for 30 free hours of childcare a week.
Funding rates for childcare will increase by just 4 per cent on average, while nursery staffing costs will increase by an average of 15 per cent, according to the NDNA.
When factoring in up to £2,000 in tax-free childcare benefits which parents can claim each year, full-time childcare with a childminder or in daycare could still cost 31 to 37 per cent of the average income, according to our analysis.
The most expensive country is New Zealand, with childcare costs eating up 37 per cent of the average income; followed by the United States at 32 per cent.