Parents quit work as childcare costs soar

Parents are being forced to give up work in order to avoid debts as they struggle to make their income stretch to childcare.

Research by Aviva revealed to those considering payday loans to make ends meet that a mother working part-time could actually be up to £98 a month worse off after work and childcare costs than a stay-at-home parent.

The average cost of childcare each month for all children is £385, however this rockets to £729 for those under the age of two.

However, some 54 per cent of families claim they don't use childcare and 31 per cent say their family and friends will look after their kids for free, parents who do use childcare services can find it difficult to juggle their finances.

"As care costs rise, it's quite possible we will see more and more couples relying on one salary while the other person looks after the children - simply because they may actually be worse off if both people work," said Louise Colley, head of protection for Aviva.

Different research by Aviva has also revealed that credit card and payday loan debts have increased as savings and incomes have fallen.

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2011-09-02 13:00:00 © Moneyextra.com