In Europe governments heavily subsidise childcare costs

Stephen Burke, director

According to the trust, a nursery place for a two-year-old in the UK costs on average �5,700 a year - unaffordable for many low-income families.

Despite government subsidies and tax credits, the Daycare Trust says that the high charges are preventing some parents from returning to work.

"In Europe governments heavily subsidise childcare costs and parents have access to free or subsidised places when they want them," said the trust's director, Stephen Burke.

"In the UK we have a large private sector providing childcare.

Part of infrastructure

"We argue that childcare should be as much a part of the local infrastructure as schools and hospitals are," Mr Burke said.

British parents faced the highest childcare bills in Europe, he said.

"That means many families simply can't afford to use quality childcare. Children are missing out on early learning and parents are trapped in a low pay or no pay cycle.

"With a quarter of children growing up in workless families, childcare is key to tackling child poverty and helping parents to work, learn and boost family income."

Funding 'complicated'

The report, The Price Parents Pay, also identifies regional differences in childcare costs, with London parents paying an average of �135 per week.

And families with twins and triplets are found to be particularly hard-hit by the extra expense - the report identifies one family paying �2,500 a month for childcare.

There are also complaints that the system for subsidies and childcare credits is too complicated - with 55 different funding routes identified.

The Daycare Trust wants tax incentives for employers to help staff with childcare.

And it wants the government to open childcare centres in all communities, which would particularly benefit deprived families who could not afford private nurseries or childminders.

Reduced costs

A spokesperson for the Department for Education said that, since September 1998, there has been a free nursery place for every 4 year old, significantly reducing the cost of childcare.

And by September 2004, this would include every three year old child.

"We are helping with the cost of childcare through the working families tax credit, which is helping 1.168 million working families claim up to 70% of childcare costs.

"Childcare funding has trebled from �66m in 2000-01 to over �200m in 2003-04, with an additional �155m from the new opportunities fund to increase provision in disadvantaged areas," the spokesperson said.