Childcare cost spiral: parents are paying £151 million for late pick ups

  • In the last 12 months parents have been fined over £151 million for picking their children up late from nursery, school and childminding services
  • Postcode lottery for wraparound primary school care – in some areas it is free, while for others it can cost up to £450 a month for after school term time clubs (£22.68 a session)
  • Fines for collecting children late from wraparound care can be as much as £50 for a single delayed pickup – with some providers reporting parents to social services
     

New research1 from Direct Line Life Insurance reveals that parents have paid £151 million in fines in the last 12 months after picking their children up late from school, nursery and childminding services. With parents picking up their children late on average three times in the last 12 months, they have paid a total of £25.10 in fines. Over 259,000 parents paid out over £100 in fines in this period and one in 20 parents have been late to collect their offspring at least 26 times.

As a result of these charges, parents have to fall back on the support of family and friends (31 per cent) to help them out when they know they are going to be late. However, more than a fifth (22 per cent) had to rely on the school or carer to look after the child until they were able to collect them.  Worryingly, 10 per cent of parents who have been unable to pick up their child allowed children aged under 10 years old to make their way home alone.  

The analysis of wraparound care, which includes breakfast and after school clubs designed to help working parents, shows huge variations in charges for late pick ups. Some providers of after school clubs for primary schools start the clock for fines immediately and charge £1 per minute2 until the parent arrives, while others charge a flat fee for late collections. However, this can be as much as £50. Some schools and childcare providers will even take a place away from a child if they are collected late on a regular basis. One school reported that if parents are thirty minutes late, social services will be contacted.

Jane Morgan, Business Manager at Direct Line Life Insurance, commented: “With long working hours and people having to commute from their place of work, it can be difficult for parents to ensure they pick their children up on time, leaving parents to rely on the generosity of friends and family to avoid charges for late pick ups. Despite their best intentions, this isn’t always possible, and people are being stung by huge and sometimes disproportionate fines for extended wraparound care.

“Given how many working families rely on this type of childcare, it is important that they consider how they would meet these costs and ensure their family is protected if their lifestyle had to change.

“Having a suitable life insurance policy in place can help a family meet these commitments and contribute towards the alleviation of financial hardship in the unfortunate event of a partner’s death. Direct Line Life Insurance offers an affordable way for families to help look after loved ones financially if someone passes away, paying out a lump sum, to help deal with every day money concerns such as household bills, childcare costs and mortgage payments.”
 

Breakfast clubs

Research into breakfast clubs shows just 12 per cent of primary schools offer free wraparound care to parents, while those that do charge, bill on average £3.20 a session. The cost of wraparound care could be a key influence when parents select their preferred school, as some offer care for as little as £0.20 a session while some charge as much as £9.18. However, many sessions also don’t start early enough for commuting parents, the majority running from 7:45 am to 8:45 am.  
 

Afterschool clubs

Parents with children in primary school are unlikely to find free extended afternoon childcare, with only 2 per cent making this available.  On average, parents are charged £9 a session for afterschool care, although one school surveyed charges a huge £22.68 (approximately £450 a month) for a club running between when school ends at 15:10pm until 18:00pm.  Most afterschool wraparound care sessions finish at 18:00, with less than one per cent of those analysed going as late as 19:00. For parents working full time, there is very little leeway between when they finish work and when then need to collect their children, so even a slight delay at work or on their commute could see them paying large fines. 

For more information on life insurance, please visit https://www.directline.com/life-cover/family-financial-planning   

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Notes to Editors

  1. Research conducted by Opinium amongst 2,008 UK adults between 14th and 16th August 2018 
  2. Independent research of 178 primary school wraparound care services from 17 cities across the UK conducted between 3rd and  14th September 2018
     

For further information please contact:

Claire Jarrett
PR Manager
Direct Line Group
Tel: 01651 832 411
Email: claire.jarrett@directlinegroup.co.uk


Katie Ormrod
Citigate Dewe Rogerson
Tel: 0207 282 1023
Email: katie.ormrod@citigatedewerogerson.com
 

Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides motor, home, travel, pet and life insurance cover direct to customers by phone or on-line.

Direct Line life insurance policies are underwritten by Legal & General, registered office: One Coleman Street, London EC2R 5AA. Legal & General Assurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under number 117659. You can check the FCA register at www.fca.org.uk/register or call the FCA on 0800 111 6768. Legal & General will introduce customers who select the Funeral Benefit Option to Dignity Funeral Services, who are members of the National Association of Funeral Directors.

Customers can find out more about Direct Line products or get a quote by calling 0800 145 5522 or visiting www.directline.com/life-cover