Aviva conducted a survey on 6,000 families and the results showed that 32,000 people have taken the decision to leave the workforce within the last year, as it no longer became cost effective for them to be in employment. The rising costs of childcare, along with the money spent on work related expenses, such as travelling back and forth, means it is no longer worthwhile for many people to work.
The study revealed that the average woman working part time, with two young children, would be £98 per month worse off than if she was not working at all. The figures are not much better for someone working full time in the same situation, she would only be £120 per month better off.
Startling figures show that couples who are both out working full time, are spending in the region of £385 per month on childcare. If you then take into account that the expense for other child related costs has risen by 6.9% since just last year, it is easy to understand why so many people are choosing to leave the workforce.
The recent Family Finance Report has suggested that working families are facing real financial hardship. Income for families declined by 2% between March and August this year, and there are additional worries caused by debt, fuel rises and general costs of living. The high cost of childcare is becoming an outgoing that many families can no longer justify.
The Department for Education have devised plans, which will hopefully help to support more families and childcare costs in the future.
View the original BBC article.