Holiday childcare prices jump by 5%, amid cost of living crisis, as parents working full time struggle to find the childcare they need
Families across Britain are bracing themselves for a difficult summer as a sharp rise in holiday childcare prices and patchy availability of places hits working parents, Coram Family and Childcare’s 17th annual Holiday Childcare Survey has revealed.
Coram’s report finds that, amid the soaring costs of living, holiday childcare costs have jumped by 5% since 2021. The average place at a holiday club now costs £148 a week – more than double what parents pay for an after-school club during term time.
Families will now find themselves almost £900 out of pocket for six weeks of holiday childcare for each school age child, nearly £500 more than they would pay for six weeks of term time childcare before and after school. Some 42% of local authorities across Britain have reported that the pandemic had caused an increase in prices.
The survey also found considerable regional variation in prices across Britain, with parents in inner London paying an average of £161 per week compared to £135 in the West Midlands, an 18% price difference. There are also huge price differences within the same area, with some holiday childcare places in inner London costing 92% more than the average, while others cost 44% less.
Alongside the financial strain, parents are struggling to find the childcare they need, with only 27% of English local authorities having enough holiday childcare available for parents in their area who work full time, down 6% on last year. Parents of disabled children face the most acute challenge with only 7% of local authorities having enough holiday childcare for these families, plunging from 16% in 2021.
Other notable gaps in England include holiday childcare for children whose parents work atypical hours and children living in rural areas, with only 10% and 15% of local authorities respectively reporting they have enough childcare availability for these groups.
Ellen Broomé, managing director of Coram Family and Childcare, said: “Families across Britain are reeling from record inflation and this steep rise in holiday childcare will push many further into financial distress.
“Many parents, particularly mothers, will have no choice but be locked out of work altogether or struggle to pay for basic necessities such as food or rent.
“Holiday childcare is key economic infrastructure. The lack of childcare places for working parents is a serious problem – not just for families but for the country’s economic output. Children have experienced such disruption throughout the pandemic, and holiday childcare offers them a safe and fun space to stay active and connect with their friends while also helping to tackle the summer learning loss.”
Coram Family and Childcare is calling on the UK, Scottish and Welsh Governments to:
Reform Universal Credit so it does not lock parents out of work – by increasing the maximum amount of childcare costs paid under Universal Credit and guaranteeing support for upfront childcare costs.
Increase support for Family Information Services to provide good quality holiday childcare information and broker access to local provision that meets families’ needs.
Expand provision of the Holiday Activities and Food programme to improve access to affordable, high quality childcare for all children who need it.
Support local authorities to ensure they have a comprehensive overview of the cost and availability of holiday childcare in their area to identify and plug gaps in provision.
Energy regulator Ofgem has told a number of energy suppliers to take immediate and urgent action, after a review found a range of weaknesses or failings in the way they charge customers direct debits.
Out of a total of 17 large suppliers in the market, the majority were found to only have minor issues, but five were found to have ‘moderate or severe’ weaknesses with Ofgem demanding immediate action.
This is an initial snapshot of findings and suppliers affected will now have to submit action plans within two weeks to set out how they will take the required actions, which Ofgem will scrutinise for effectiveness and comprehensiveness.
Although we have not found evidence of unjustifiably high direct debits, as an additional reassurance for consumers, the regulator will require all suppliers that increased their customers’ direct debits by more than 100% (impacting over 500,000 customers) to review them.
Where appropriate, Ofgem also expects suppliers to adjust any miscalculations, including making repayments if needed, and consider whether a goodwill payment is warranted.
The review of domestic energy suppliers found that:
Over 7 million energy consumers on a Standard Variable Tariff (SVT) saw an increase in their direct debit between February and April 2022
On average, direct debit levels for customers on an SVT increased by 62% in this period. Most of this reflects the increased cost of gas*
8% of SVT customers seeing an increase (around 500,000 households) experienced an increase of more than 100% and Ofgem is concerned by this and wants to ensure there is good reason for it (e.g., coming off an SVT, increase in energy use etc)
Evidence that some suppliers’ processes are not as robust as they could be, and that this could lead to inconsistent, incorrect or poor treatment for customers
A lack of formally documented policies and processes within some suppliers, which risks inconsistent and poor consumer outcomes.
Ofgem recognises that increases experienced by consumers will differ depending on a range of factors, and that some of these, such as recent tariff changes, high debit balances or recent meter reads, can drive large adjustments to customer direct debits.
But it is for suppliers to ensure that direct debits are set correctly based on all relevant information available, and that they clearly communicate any changes in a way that helps consumers understand their payments.
Jonathan Brearley, Ofgem CEO, said:“We know how hard it is for energy customers at the moment so it’s crucial that the amount they pay each month in direct debits is right so they can manage their money.
“Suppliers must do all they can, especially during the current gas crisis, to support customers and to recognise the significant worry and concern increased direct debits can cause.
“We know there is some excellent service out there, but we want to make sure that it’s consistent and standard across the board. It’s clear from today’s findings on direct debits that there are areas of the market where customers are simply not getting the service they need and rightly expect in these very difficult times.
“Today’s findings show that with the urgent changes we are now expecting, the current system will be much fairer for consumers. Bringing down the price of gas is not in Ofgem’s control; however, we will do all we can to have a fair system and ensure suppliers look after their customers.”
The Ofgem assessment divided supplier findings into three groups:
No significant issues (four suppliers)
Minor weaknesses (seven suppliers)
Moderate to severe weaknesses (five suppliers)
Suppliers in the first group, with no significant issues found, are British Gas, EDF, ScottishPower and SO Energy. Our review found that these suppliers generally had robust processes in place, although we did make some recommendations for improvement, and Ofgem will work with these suppliers for continuous improvement. We are asking these suppliers to review customer direct debits to ensure they are correct, as an additional assurance for consumers.
The second group, with minor weaknesses, consisted of Bulb, E.ON, Octopus Energy, Outfox the Market, Ovo, Shell and Utility Warehouse. For this group of suppliers, we identified some weaknesses or gaps in their processes that could lead to poor consumer outcomes.
Examples include lack of documented policies or guidance for staff, potentially not taking account of all relevant factors when setting customer direct debits, or risks that some customers’ direct debits are not assessed when appropriate. We have started compliance engagement with these suppliers to secure improvements.
Suppliers in the third group had moderate to severe weaknesses identified. This group includes Ecotricity, Good Energy, Green Energy UK and Utilita Energy, and covered a spectrum of weaknesses, ranging from inadequately documented or embedded processes, weak governance and controls, to an overall lack of a structured approach to setting customer direct debits.
Ofgem is concerned that in some cases this could lead to customer direct debits being set incorrectly, or not being evaluated for a long time, which can cause the build-up of either unnecessarily large credit balances or debt, depending on whether the customer is under- or overpaying.
Ofgem is starting compliance engagement with these suppliers to drive rapid and robust improvements to processes and reassess customer direct debits where necessary. If these suppliers don’t take action fast enough, Ofgem will consider enforcement action.
Also in this group, with severe weaknesses were TruEnergy and UK Energy Incubator Hub (UKEIH). In both cases we found suppliers did not have a consistent and structured approach to setting customer direct debits, and found severe concerns over the maturity of their processes, putting consumers at a serious risk of inconsistent or poor outcomes, with need for rapid and significant improvement.
To this end, we are considering whether enforcement action is warranted. Since the findings were made, UKEIH have ceased to trade and so we will not pursue any further action against them.
If Ofgem does not see swift and sufficient improvement, as well as redress for consumers where necessary, the regulator will not hesitate to initiate enforcement action against more suppliers, which can include fines, enforcement orders and banning the acquisition of new customers.
Ofgem has now instructed suppliers to:
· review the accounts of all customers whose direct debit was increased by 100% or more between 1 February and 30 April 2022, to assess whether the uplift was appropriate
· adjust any miscalculations and consider whether a goodwill payment is warranted in the circumstances
· address any process issues which may have incorrectly led to significant increases or other poor consumer outcomes, such as systemic over- or underpayment, and
· submit action plans within two weeks to set out how they will take the required actions, which Ofgem will scrutinise for effectiveness and comprehensiveness.
Journalistic website Money Saving Expert (MSE) sent Ofgem a dossier of information earlier this year on the same issue, after it was raised by consumers.
This is all part of the wider work that Ofgem is doing to make the energy market fairer, including a robust recent review into lessons learnt from Storm Arwen, a more frequent and fairer price cap, and most recently, action to improve the financial resilience of companies.
Rocio Concha, Which? Director of Policy and Advocacy, said:“The cost of living remains consumers’ number one priority, yet Which? has heard concerning stories of consumers having their energy direct debits miscalculated or increased by huge amounts, while our research shows many customers are struggling to understand their bills and pricing.
“It’s encouraging to see the regulator taking action over poor performance and Ofgem should not hesitate to impose penalties on any suppliers that fail to make the necessary improvements.
“At a time when consumers are paying more than ever before for energy, the regulator must also work with government and suppliers to explore ways of using data proactively to offer targeted support to those in most need of help before they have to turn to debt charities.
“Which? will seek to work with businesses in energy and other key sectors to find more ways to support consumers through the tough times ahead.”
Almost one in four families across the UK will get £326 sent directly to them from today, with the second instalment of £324 sent later this year as part of the UK Government’s £37 billion support package.
£326 – the first of two cost of living payments – will automatically hit seven million bank accounts between today and 31 July 2022 as part of the government’s £37 billion support package
Second instalment of £324 will follow from the autumn, with separate payments for pensioners and disabled people also coming later this year
Tax credit claimants will receive their first cost of living instalment by autumn
Over eight million households on means-tested benefits will automatically get the first instalment of £326 from this month.
This means that, combined with other support, millions of low-income households across the UK will receive at least £1,200 from the government by Christmas to ease Cost of Living pressures.
On top of that, nearly one in ten people will get the £150 disability payment this Autumn, and over 8 million pensioner households could get an extra £300 from Winter Fuel Payments in November and December.
Prime Minister Boris Johnson said: “Just as we looked after people during lockdown, we will help them get through these tough economic times.
“Today’s payment is the signal to millions of families that we are on their side and we have already promised more cash in the autumn, alongside other measures – including our Help for Households – to support the vulnerable and ease the burden.”
Work and Pensions Secretary, Thérèse Coffey said: “Our help for households will begin landing in bank accounts today as we make sure those on the lowest incomes get the support they need in the face of rising costs.
“This first instalment of £326 should reach all eligible low-income households by the end of July.”
Chancellor of the Exchequer, Nadhim Zahawi said: “It’s great that millions of the families who are most in need are starting to receive their Cost of Living Payments, which I know will be a massive help for people who are struggling.
“Alongside tax cuts, changes to Universal Credit and the Household Support Fund, these payments are a vital part of our £37 billion support package to help people deal with rising prices.”
Most people entitled to the first instalment of the Cost of Living payment will receive it between now and 31 July 2022. Households who are eligible because they receive tax credits and no other eligible benefits will receive their first instalment from HMRC in the autumn, and the second instalment in the winter.
DWP will administer payments for customers on all other eligible means-tested benefits, and customers do not need to contact the government or apply for the payment at any stage.
In addition to the £650 Cost of Living Payment, all domestic energy customers in the UK will receive a £400 grant to help with energy bills, and those in Council Tax bands A-D in England will get an extra £150, which has already been sent to many households. This brings support for millions to £1,200 by the end of the year.
The disability and pensioner payments come in addition to this, as does any support from the Household Support Fund, which was recently extended through to March 2023 with £421 million additional funding.
It is now worth £1.263 billion, and combined with £237 million for devolved nations, means this support package now stands at £1.5 billion. The Household Support Fund is designed to help low-income households in England with food and energy bills, and is distributed by local authorities, who know their areas best.
Total UK Government support this year for low-income families stands at £37 billion, a figure which includes a recent rise to £12,570 for the National Insurance starting thresholds. This will benefit 30 million working people and is worth £330 to a typical employee.
Family benefits, free school meals and concessionary travel are part of support helping households to mitigate the increased cost of living.
Funding for 2022-23 includes:
£294.4 million for Scottish Child Payment and other family benefits, including Best Start Grants, Best Start Foods and Bridging Payments
£64 million for universal provision of free school meals during term time for children in p4 and p5 and alternative holiday provision for eligible children
£306 million for concessionary travel
£437 million to help with household bills via Council Tax Reduction and Water Charge Reduction
Social Justice Secretary Shona Robison said: “Within our limited budget, we have allocated almost £3 billion in this financial year to help families and households face the increased cost of living. This includes support for energy bills, childcare, health and travel, as well as social security payments not available anywhere else in the UK.
“We are increasing our Scottish Child Payment to £25 per child per week when we extend it to under 16s by the end of 2022. This will mean a 150% increase in less than a year and around 400,000 children eligible for this vital anti-poverty benefit.
“Westminster holds most of the powers needed to tackle the cost of living crisis as well as borrowing and resourcing powers we do not currently have. This includes energy, the minimum wage, National Insurance and 85% of social security spending.
“The UK Government’s decade of austerity and welfare reforms have placed people in a particularly precarious position. That is why we have continually urged them to use all the powers and fiscal headroom at their disposal to put together a comprehensive action plan to address the long term impacts of rising prices and provide immediate support to struggling households.
“In the meantime we will continue to use our limited budget and constrained powers to work for people and help cushion the impact of UK Government policies.”
30 million people across the UK will benefit from the biggest personal tax cut in a decade from today
‘Hard working Brits’ will save up to £330 per year – 2.2 million lifted out of personal tax altogether
70% of UK workers now paying less National Insurance, even after accounting for the Health and Social Care Levy
30 million people across the UK will benefit from the biggest personal tax in a decade from today – with hard working Brits saving up to £330 per year.
The £6 billion tax cut will see the level at which people start paying National Insurance rise to £12,570 – lifting 2.2 million people out of paying any personal tax and ensuring people get to keep more of the money they earn.
The threshold change means that 70% of UK workers will pay less National Insurance, even after accounting for the Health and Social Care Levy that is funding the biggest catch up programme in NHS history and putting an end to spiralling social care costs.
Speaking before his resignation last night, formerChancellor of the Exchequer Rishi Sunak said: “I know rising prices are putting pressure on hard-working families across the UK – which is why we’ve stepped in to help to ease the burden with a £37 billion package of support this year, including at least £1,200 going directly to the 8 million most vulnerable families.
“Today marks the next stage in that package, with the biggest personal tax cut in over a decade coming in to help millions of workers across the UK keep up to £330 more each year.”
The Prime Minister (at time of writing, anyway – Ed.) said: “We know it’s tough for many families across the UK, but we want you to know that this government is on your side.
“Today’s tax cut means around 70 per cent of British workers will pay less National Insurance – even after accounting for the Health and Social Care Levy that is funding the biggest catch up programme in NHS history and putting an end spiralling social care costs.
“So whether you are a receptionist, work in hospitality or are a delivery driver, this tax cut is likely to make you and your family better off.”
From today the level at which people start paying National Insurance has risen from £9,880 to £12,570.
This change means that millions of people working across hundreds of different industries across the UK will now be better off.
This includes bricklayers who’ll save £218, care workers who’ll save £324, hairdressers who will get a £118 benefit and nursery assistants who’ll get a £343 yearly boost.
Workers can check their salary in the government’s online tool to estimate the amount they could save between July 2022 to July 2023.
The last major personal tax cut of today’s magnitude was nearly ten years ago, when the income tax personal allowance increased by £1,100 in 2013. Today’s threshold change is more than double that, as working people are now able to hold on to an extra £2,690 free from tax.
Today’s change to National Insurance thresholds comes as part of the Chancellor’s wider vision for a lower tax economy. At the Spring Statement Mr Sunak announced a 1p income tax cut in 2024 – which will be the first cut to the basic rate in 16 years and will save the average taxpayer a further £175 a year.
The Chancellor also committed to cutting and reforming business taxes later this year in the autumn, to help spur business growth and productivity. The government is currently working with industry on how best to do that.
The increase to the National Insurance thresholds will leave around 76% of National Insurance payers in the North East better, 75% in the North West and Merseyside, and 62% in London.
Today’s landmark personal tax cut also comes as the government launched new Help for Households campaign designed to raise awareness and signpost people to the £37 billion in support on offer and targeted at those most in need.
The support provides millions of the most vulnerable households at least £1,200 of support in total this year to help with the cost of living, with all domestic electricity customers receiving at least £400 to help with their bills.
It also includes a 5p fuel duty cut – the biggest cut ever to fuel duty rates, a rise in the national living wage to give full time workers an extra £1,000 and a cut to the Universal Credit taper rate to provide over 1 million families an extra £1,000.
The NICs threshold change takes effect following the government making tough but responsible decisions to manage the public finances responsibly and choosing not to saddle future generations with almost £400 billion of debt used to protect jobs and the economy during the pandemic – worth around £5,500 for every person in the UK.
The government had planned for this good news story to be the big news event of today, but those plans were scuppered by the resignation of two senior cabinet ministers last night. As former Prime Minister Harold MacMillan once ruefully observed: “Events, dear boy. Events” …
People of our area alongside many communities have had a very tough time under this disgraceful Tory led government.
It has been no accident but deliberate policy.
The manipulation of the fuel prices causing absolute confusion.
But not for the fuel suppliers, No!! In particular the shareholders of the fuel suppliers who are making hundreds of millions of pounds in profit at the same time.
In contrast the Tories are ‘promising’ another 10% rise in the cost of living this year!
The lesson is there for us: it’s time the people slung out the Tories like they did in Honiton recently.
As the cost of living crisis worsens, on Sunday 26th June and Sunday 3rd July Greenpeace volunteers spoke to people on Middle Meadow Walk and on Portobello Promenade about the connection between rising energy bills, Putin’s war, and the climate crisis.
They invited the public to write down how much their energy bills have already increased, and stick these messages onto a life-size cardboard cut-out of Chancellor Rishi Sunak. Volunteers found that most people’s bills had at least doubled and many were fearful of further increases.
Jessie from Portobello wrote that her rising bills meant she hadn’t been able to put her heating on and was worried about what she would do in the Autumn, while another local wrote ‘my bills are not sustainable. Invest in greener energy!’
These messages, along with hundreds of others from across the UK, will be delivered directly to the Government so that Ministers can see how much people are really having to pay to heat their homes and cook food.
Anke, a Greenpeace volunteer from Bruntsfield, said: “‘I was shocked to hear how many more local people are worrying about being pushed into fuel poverty when bills rise again in the autumn.
“Greenpeace Edinburgh volunteers are calling on the Chancellor to deliver an Emergency Energy Package that stops fuelling rising energy bills, the climate crisis and Putin’s war, and on our local MPs to keep the pressure on the Government until they do the right thing.”
On 1st April energy bills went up by an average of £700, pushing 2.5 million UK households into fuel poverty. According to data published by Energy Action Scotland, as of last December, 24% of all households in Scotland live in fuel poverty.
In October bills will rise again, potentially reaching up to an estimated £2600 per year, which could put 1 in 3 households in fuel poverty, according to National Energy Action. Life is only going to get harder for people in Edinburgh.
Although the Government has recently declared a windfall tax on oil and gas producers, this will only provide temporary relief and does nothing to address the causes of the climate or cost of living crises.
Greenpeace Edinburgh is calling for a tax rate of 70%, which could bring in an extra £13.4bn per year. £7.9bn of this tax should go towards the six million households experiencing fuel poverty. This would leave just over £5 billion to invest in the nationwide roll out of heat pumps, insulation and other energy efficiency measures as well as increasing investment in renewable energy infrastructure.
Anke continued: “This Government has failed to get a grip on the climate and cost of living crises. We’ll keep facing these problems for years to come while oil and gas giants pump out planet-trashing emissions and enjoy sky high profits.
“Join us in calling on the Chancellor to make them pay up”.
One Parent Familes Scotland asked single parents accessing their services about the main issues affecting their lives and what needs to be done to tackle them.
How will the rising cost of living affect the Scottish Budget in 2023-24? Will the Scottish Government’s proposals for reforming the public service deliver the efficiencies expected?
The committee is seeking views from organisations and the public to inform its pre-budget scrutiny work, prior to the Scottish Government publishing its 2023/24 budget later this year.
Committee Convener Kenneth Gibson MSP said: “The next Scottish Budget will be challenging as the current cost-of-living crisis impacts on Scotland.
The Committee is therefore keen to hear from organisations and individuals how the Scottish Government’s Budget in 2023-24 should respond to this crisis.
“We also want to hear views on how the government’s proposed reform of the public service will support its future spending plans.”
Mr Gibson concluded: “Using the government’s resource spending review announced in May, we will focus our pre-budget scrutiny on the proposals for reforming the public service, the impact of the cost of living crisis on the Scottish Budget, and how spending priorities might affect the delivery of national outcomes.”
More than eight million households across the whole of the UK will get a cash payment from July to ease cost of living pressures, Work and Pensions Secretary Thérèse Coffey set out detailed plans yesterday.
Millions will receive the first of two cost of living instalments totalling £650 from 14 July 2022, part of the £1,200 support package this year
Initial automatic instalment will be £326, with the rest to follow in a second instalment in the autumn
Comes as part of £37 billion government package to help families with cost of living pressures
The first instalment of the £650 for qualifying low income households in England, Wales, Scotland and Northern Ireland will land in bank accounts from 14 July 2022, continuing to the end of the month.
The move will see millions of households initially £326 better off as the government delivers significant interventions to support groups who are most vulnerable to rising costs. In total, millions of households will receive at least £1,200 from the government this year to help cover rising costs.
Work and Pensions Secretary, Thérèse Coffey said: “With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living.
“This one-off payment totalling £650 is part of our £37 billion cost of living support package that will put an extra £1,200 into the pockets of those most in need.”
Chancellor of the Exchequer, Rishi Sunak added: “We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help.
“In July over 8 million people will get their first £326 payment to help with rising prices, as part of a package worth at least £1,200 for vulnerable families. I said we would stand by people when they needed help, and we are.”
The second instalment of £324 will be sent to qualifying low income households in the Autumn. The payments are designed to be deliberately slightly unequal to minimise fraud risks from those who may seek to exploit this system.
The eligibility date for the second instalment will be announced soon.
Low-income households are benefiting from government support in a variety of different ways this year as global inflationary pressures, exacerbated by the unjust war in Ukraine, have caused prices to rise for several essentials.
The government understands that many people are worried about the impact these rising prices will have on their household finances, which is why £37 billion of support is being provided to boost budgets and mitigate the worst of these pressures.
Support includes the direct payment of £650 for over 8 million households on benefits, a separate £300 payment for pensioners, and a £150 payment for disabled people, which can be paid on top of the £650 payment.
This is on top of £400 for all households to help with energy bills, and an extra £150 for properties in Council Tax bands A-D, meaning millions of the lowest-income households will receive at least £1,200 in support this year.
This is all in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants, a rise in the National Living Wage to £9.50 an hour, and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.
The government has also expanded support for the Household Support Fund – which helps people with food and energy bills – with an extra £421 million, on top of £79 million for devolved nations; the total value of this support now stands at £1.5 billion. Fuel duty was also cut by 5p per litre for 12 months in March 2022, and alcohol duty has been frozen for 2022/23.
You can read more about the UK Government’s cost of living support and what is available here.
