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Childcare costs push families out of work and into poverty

August 5, 2025
in Business
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Childcare costs push families out of work and into poverty
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BBC Ceri Jones smiles at the camera holding her baby in her left arm, holding a milk bottle. She has mousy brown hair pulled back in a ponytail and wears a white t-shirt. BBC

Ceri Jones, 33, has decided to only have two children due to the rising costs

High childcare costs are pushing more families into poverty and out of work, according to new research.

A report by the Bevan Foundation said the soaring cost of childcare in Wales is beyond the reach of many, with some families now limiting the number of children they are having due to costs.

It comes as parents call upon on the Welsh government to extend funded childcare to young children between nine months and two years old, like in England.

In a statement, the Welsh government said it was investing more than “£150m” in childcare provision and more was available in “the most disadvantaged communities”.

Catrin hughes sits on a white fur chair, wearing a yellow sweatshirt. She has light blonde/ brown hair.

Catrin Hughes says sometimes mothers go without because the cost of childcare is “massive”

Catrin Hughes holds sessions where mums can spend time with their babies in Menai Bridge, Anglesey, and says the soaring childcare costs are a hot topic among new mums.

“Sometimes we [mums] go without because the cost of childcare is massive,” said Ms Hughes.

“People are living further away from their families, so they haven’t got that additional support, and grandparents are working longer so the pension age is a lot higher.

“We’d just like the government to look again at their policies and bring them in line with England.”

In Wales, children between three and four years old qualify for 30 hours of free childcare for 48 weeks of the year if their parents either work or are in training.

Some eligible two-year-olds will be able to qualify for 12.5 hours of care a week under the Flying Start initiative, but this is yet to be rolled out nationally.

In England, children between nine months and two of working parents can qualify for 15 hours of free childcare.

Ceri Jones, 33, said she has decided to only have two children due to the rising costs.

She said balancing everything is “really hard”, as there has been “rises in everything”.

“We can only afford two children to give them the best we can give them in a way,” she said.

Dr Steffan Evans, smiles at the camera underneath a tent. Colourful bunting can be seen behind him. He has blue eyes and strawberry blonde short hair.

Dr Steffan Evans, head of policy at the Bevan Foundation, says children are missing out on all the opportunities childcare provides

“It’s a system that isn’t working for anyone in it,” said Dr Steffan Evans, head of policy at the Bevan Foundation.

“The costs are expensive for families across Wales and there is a lack of support there for families with the youngest children.

“That means families are being pushed out of work and locked into poverty and mean children miss out on all the opportunities that childcare provides.”

Children’s Commissioner for Wales Rocio Cifuentes described the rising costs as a “major concern”, adding that poverty among children in Wales has reached “a new low”.

Gwenllian Landsown, chief executive of Mudiad Meithrin stands outside their promotional stand at the Eisteddfod. She wears a khaki jacket, has a brown bob and smiles at the camera.

Gwenllian Landsown, chief executive of Mudiad Meithrin, said there is an element of postcode lottery when it comes to childcare for two-year-olds in Wales

Mudiad Meithrin, a voluntary movement specialising in Welsh-medium early years development, has joined calls upon the Welsh government to fund childcare earlier.

“There is an element of a postcode lottery when it comes to the two-year-olds because Flying Start is still being rolled out,” said its chief executive Dr Gwenllian Lansdown.

“There’s no funded hours for under two years of age so it’s difficult for those parents who want to go back to work because there’s nothing available.

“The system is onerous, complex and overly bureaucratic.”

In response, the Welsh government said it was increasing spending with more than £150m for childcare initiatives, including the childcare offer and Flying Start childcare.

“Flying start childcare focuses on our most disadvantaged communities, in the first instance, ensuring that support reaches families in greatest need,” it said.

“Our childcare offer provides up to 30 hours per week of government-funded nursery education and childcare for eligible parents of three and four-year-olds, for up to 48 weeks of the year.

“Unlike in England, it is available to parents in training and education as well as those in work. It is available 48 weeks per year, compared to England’s 38 weeks, and includes some flexible holiday provision which can be taken throughout the year.”

The spokesperson added it was committed to investing in Wales’ future to create a “fairer, more equal” Wales where “every child has the opportunity to achieve their potential”.

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