How Much Does Childcare Actually Cost?

Let’s Talk About It.

It's a question every parent asks, and one that often leads to

frustration: "Why is childcare so expensive?"

As nursery owners, we hear this. We see the rising costs on your side,

and we understand. What most people do not see is our side of the

story—the side where we are trying to keep the doors open while

absorbing costs that continue to climb. We would all love to offer

truly free childcare, but the reality is that the numbers just do not add

up.

The truth is, the cost of childcare is complex, and it is a direct

reflection of a business model that is under incredible pressure.

When you ask about the cost, you are not just asking about a

number; you are asking about salaries, rent, business rates, heating,

electricity, food, resources, and the hundreds of other things that go

into providing a safe, enriching environment for your child.

The Funding Gap: A Problem We All Face

The biggest misconception about childcare costs comes from

government funding. Parents are often given a certain amount of

"free" hours, but what they do not know is that the funding rate we

receive from the local authority does not actually cover the true cost

of providing those hours, especially for our three- and four-year-olds.

This gap is a huge problem. It means that nurseries, in order to

survive, must find other ways to make ends meet. This is not out of

greed; it is out of necessity. Every setting is different, and we each

have to get creative to make our business viable. This is why you see

so many variations in how funding is applied:

 * Some nurseries charge for consumables like nappies, snacks, and

resources.

 * Some have a higher hourly rate for hours not covered by funding.

 * Some limit how you can use your funding to make the numbers

work.

These are not ideal solutions, but they are the business decisions we

have to make to ensure we can keep providing high-quality care,

pay our amazing staff a fair wage, and meet our rising overheads.

Investing in the Future: Your Child’s Foundation

Ultimately, the cost of childcare is an investment. It is an investment

in your child's crucial early years, in the professional development of

the educators who shape them, and in the quality of the environment

they learn in.

As an industry, we are all doing our best to navigate this difficult

landscape. Our goal is the same as yours: to give every child the best

possible start. By understanding the challenges we face, we can work

together to ensure that the vital service of early years education

remains strong and sustainable for future generations.