• UK parents are spending on average £71 per child to place them on waiting lists for nursery spots, with no real security of gaining a place
• More than a third (34 per cent) of nurseries charge a non-refundable fee for adding children to waiting lists
• A further 36 per cent of nurseries did not charge a non-refundable waiting list fee but did charge an upfront non-refundable registration fee instead

 

New research from Direct Line Life Insurance¹ reveals that UK parents are spending on average £71 per child to place them on waiting lists for nursery spots, with no real security of gaining a place. In some instances, parents have paid up to £199 in order to secure their child a place on the waiting list. The fees do not guarantee a child a place at the nursery either, in fact, in most cases it’s revealed that many are non-refundable, and parents are often left still facing a high level of stress and a long wait before their child is potentially even given a spot.

In the UK, almost half of families (46 per cent) have two or more children, meaning they could be spending upwards of £142[i] just to put their children on a waiting list for a possible nursery spot.

Direct Line Life Insurance spoke to nurseries across the UK including London, Belfast, Edinburgh and Cardiff to understand the childcare struggles for parents. The findings revealed that more than a third (34 per cent) of nurseries charge a non-refundable fee for their waiting lists ranging anything from £5 to £199. Of these nurseries, the highest proportion (22 per cent) that charged for waiting lists were in London, closely followed by Edinburgh (14 per cent).

A further 36 per cent of nurseries did not charge a non-refundable waiting list fee but did charge an upfront non-refundable registration fee instead. This means that overall, 70 per cent of nurseries are asking for some sort of non-refundable fee upfront, before their child has even started at the nursery. This is on top of a refundable deposit, often equivalent to a month of fees, which isn’t returned until the child leaves the nursery. Totting all this up, it was found that in some of the more expensive nursery locations, parents need to budget for an upfront cost of £2,125 just to be able to secure a childcare spot. The average cost of a non-refundable registration fee was £75.

Average cost of upfront non-refundable fee and percentage of nurseries charging them by city

¹ Source: Direct Line Life Insurance, 2023

 

Of the nurseries surveyed, a fifth (20 per cent) did not display their fees upfront on their websites, that information needed to be requested, either through online forms, through a physical visit or via the phone.

Hannah Donnison, Product Manager Direct Line Life Insurance, commented: “Childcare costs often take up a large part of a family’s monthly budget, so it’s important that parents are aware of all the lesser known and hidden costs that come with arranging childcare in the first place. It’s not surprising that some parents find it unaffordable to cover the upfront costs of nurseries before even securing a place, especially in circumstances where many might not have had income for a few months or it’s been reduced while on maternity or paternity leave. Individual nurseries are known to take different approaches, but a large percentage do charge additional fees so make sure to look for these when doing your research. If you’re eligible, there is support available for childcare through the Government’s tax free childcare scheme, as well as in some instances childcare vouchers. Currently, when your child reaches three you can claim for additional financial support and there is also some additional support for under twos depending on your circumstances.”

ENDS

Notes to editors

1. Research conducted by FleishmanHillard between 16^th October and 22^nd November 2023 amongst 108 nurseries across Oxford, Leeds, London, Newcastle, Edinburgh, Manchester, Exeter, Devon, Cambridge, Bristol, Cardiff, Birmingham, Belfast and Manchester.

2. Non-refundable fees includes any upfront fee which is charged to parents before their child has started nursery that is not refundable.

[1] ONS, Families and Households in the UK, 2022 https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/families/bulletins/familiesandhouseholds/2022

For further information please contact:

Chelsey Wheeler

Deputy Head of News Issues

Email: [email protected]

 

Caitlin Whyte

FleishmanHillard
Email: [email protected]

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