February17^th 2003 Number 20

Subject:

Risingchildcare costs

Background

Astudy by the childcare charity The Daycare Trust shows that childcare costshave risen by almost seven per cent in the last year. The typical cost of a nursery place for a child under two is now128 a week, compared to the average weekly household income of 550. The charity called for increased tax breaksfor individuals and employers to help with childcare costs.

BUPAs position:

Nursery costs have risen largely due to increases in employment costs asa result of changing employment legislation and improving the pay levels inwhat has traditionally been a very low paid sector.

Like every other nursery operator, Teddies has seen its wage billincrease but the increased investment is necessary to be able to attract andretain qualified and experienced childcare professionals in the nurseries.

Increasingly, parental choice does favour nursery provision and, with thedecline in the number of childminders, parents quite often have no option butto pay the going rate in nursery fees.

The majority ofpeople who use day care are in a salary bracket that means they dont receiveany Government funding. We believe theydo need some financial support. Webroadly agree with the Daycare Trust that there should be more help withchildcare costs so that employers can retain talented people and parents can bereassured in the quality of the care their children receive.

Further information:Carole Edmond, managing director, Teddies Nurseries, telephone 020 76562318