Working families face £436 cut in in support for childcare costs next year

Almost half a million families are set to lose an average of £436 a year in support for childcare costs from April next year, according to new figures out today from the independent think tank the Resolution Foundation.

In London, where childcare costs are highest, nearly 50,000 families will lose on average £600. Some families could lose as much as £1,300 a year in 2011, in comparison to previous Government plans.

The cuts stem from an announcement made by Chancellor George Osborne in the October Spending Review, but this is the first time that their full regional impact has been shown.

The changes relate to the childcare element of the Working Tax Credit, which is claimed by around 450,000 working households across the UK. Under the current system, working parents can claim support for up to 80% of the costs of childcare, but from April that figure will fall to 70%.

A recent survey found that as many as one in three working parents are considering giving up their job because they feel unable to cope with childcare costs. The price of a nursery place has risen by over 20 percent in real terms since 2002. A typical full-time nursery place in England now costs £167 per week.

Gavin Kelly, Chief Executive of the Resolution Foundation, said:

“For working mums on low-to-middle incomes losses like these will be hard to bear. Many parents find support with childcare costs absolutely essential to staying in work, and the big worry is some will now find that work doesn’t pay. With other work-related costs, such as train fares, now also rising, these cuts couldn’t come at a worse time for families. Many families are still unaware of the changes, despite the fact that they come into effect in a few months time.

“This was already set to be a tough year for families. With wages rising more slowly than inflation, households are going to get poorer, even before cuts are factored in.”

Impact of cuts to childcare element of Working Tax Credit by Local Authority:

UK, 450,000 families, £436 average loss

London, 47,920 families, £603 average loss

Barking and Dagenham, 1,630, £676

Barnet, 1,340, £569

Bexley, 1,440, £592

Brent, 1,990, £573

Bromley, 1,610, £562

Camden, 820, £526

Croydon, 3,410, £617

Ealing, 1,490, £582

Enfield, 1,970, £625

Greenwich, 1,950, £664

Hackney, 1,890, £626

Hammersmith and Fulham, 730, £573

Haringey, 1,700, £614

Harrow, 860, £545

Havering, 1,150, £528

Hillingdon, 1,360, £549

Hounslow, 1,220, £523

Islington, 1,020, £528

Kensington and Chelsea, 460, £533

Kingston upon Thames, 600, £501

Lambeth, 2,780, £649

Lewisham, 3,170, £647

Merton, 1,140, £554

Newham, 1,980, £628

Redbridge, 1,290, £635

Richmond upon Thames, 570, £527

Southwark, 3,010, £695

Sutton, 1,100, £519

Tower Hamlets, 670, £578

Waltham Forest, 1,860, £601

Wandsworth, 1,210, £592

Westminster and City of London1, 500, £581

East Midlands, 35,500 families, £421 average loss

Amber Valley, 780, £386

Ashfield, 950, £424

Bassetlaw, 750, £395

Blaby, 850, £406

Bolsover, 430, £386

Boston, 520, £397

Broxtowe, 850, £410

Charnwood, 1,240, £412

Chesterfield, 750, £368

Corby, 660, £474

Daventry, 540, £451

Derby UA, 2,210, £438

Derbyshire Dales, 340, £360

East Lindsey, 950, £353

East Northamptonshire, 690, £411

Erewash, 1,000, £415

Gedling, 1,110, £404

Harborough, 540, £379

High Peak, 800, £360

Hinckley and Bosworth, 830, £379

Kettering, 780, £433

Leicester UA, 2,320, £495

Lincoln, 760, £404

Mansfield, 820, £407

Melton, 380, £378

Newark and Sherwood, 900, £383

North East Derbyshire, 630, £365

North Kesteven, 890, £376

North West Leicestershire, 670, £421

Northampton, 2,050, £468

Nottingham UA, 2,750, £506

Oadby and Wigston, 450, £418

Rushcliffe, 780, £405

Rutland UA, 230, £384

South Derbyshire, 750, £436

South Holland, 540, £394

South Kesteven, 1,210, £379

South Northamptonshire, 500, £408

Wellingborough, 650, £462

West Lindsey, 650, £367

East of England, 31,350 families, £428 average loss

Babergh, 430, £379

Basildon, 790, £489

Bedford, 1,070, £455

Braintree, 710, £408

Breckland, 850, £354

Brentwood, 280, £490

Broadland, 640, £313

Broxbourne, 480, £523

Cambridge, 460, £439

Castle Point, 360, £444

Chelmsford, 790, £433

Colchester, 980, £442

Dacorum, 730, £457

East Cambridgeshire, 430, £413

East Hertfordshire, 450, £434

Epping Forest, 490, £524

Fenland, 540, £398

Forest Heath, 290, £385

Great Yarmouth, 590, £327

Harlow, 580, £446

Hertsmere, 500, £532

Huntingdonshire, 1,110, £367

Ipswich, 860, £399

King’s Lynn and West Norfolk, 800, £347

Luton UA, 1,380, £540

Maldon, 230, £368

Mid Bedfordshire, 730, £426

Mid Suffolk, 460, £369

North Hertfordshire, 590, £449

North Norfolk, 440, £330

Norwich, 800, £386

Peterborough UA, 1,740, £435

Rochford, 320, £425

South Bedfordshire, 730, £430

South Cambridgeshire, 670, £390

South Norfolk, 590, £346

Southend-on-Sea UA, 1,050, £447

St. Albans, 470, £459

St. Edmundsbury, 620, £378

Stevenage, 610, £487

Suffolk Coastal, 630, £382

Tendring, 750, £371

Three Rivers, 390, £498

Thurrock UA, 1,060, £551

Uttlesford, 310, £392

Watford, 480, £547

Waveney, 530, £356

Welwyn Hatfield, 560, £472

North East, 19,660 families, £419 average loss

Alnwick, 230, £377

Berwick-upon-Tweed, 180, £298

Blyth Valley, 640, £414

Castle Morpeth, 260, £405

Chester-le-Street, 460, £428

Darlington UA, 990, £426

Derwentside, 640, £438

Durham, 550, £440

Easington, 760, £439

Gateshead, 1,390, £397

Hartlepool UA, 860, £368

Middlesbrough UA, 1,180, £450

Newcastle-upon-Tyne, 1,560, £427

North Tyneside, 1,700, £418

Redcar and Cleveland UA, 1,180, £457

Sedgefield, 670, £448

South Tyneside, 1,070, £439

Stockton-on-Tees UA, 1,670, £433

Sunderland, 2,170, £389

Teesdale, 200, £314

Tynedale, 400, £386

Wansbeck, 440, £401

Wear Valley, 460, £423

North West, 68,400 families, £421 average loss

Allerdale, 530, £321

Barrow-in-Furness, 570, £358

Blackburn with Darwen UA, 1,560, £439

Blackpool UA, 2,110, £385

Bolton, 3,170, £436

Burnley, 1,010, £440

Bury, 2,300, £443

Carlisle, 890, £327

Chester, 920, £400

Chorley, 1,100, £378

Congleton, 700, £391

Copeland, 380, £349

Crewe and Nantwich, 890, £391

Eden, 340, £327

Ellesmere Port and Neston, 740, £405

Fylde, 710, £368

Halton UA, 1,350, £436

Hyndburn, 1,050, £434

Knowsley, 1,800, £436

Lancaster, 1,260, £364

Liverpool, 4,440, £450

Macclesfield, 1,030, £393

Manchester, 3,880, £508

Oldham, 2,520, £417

Pendle, 970, £420

Preston, 1,480, £460

Ribble Valley, 510, £342

Rochdale, 2,370, £439

Rossendale, 820, £400

Salford, 2,460, £471

Sefton, 2,620, £411

South Lakeland, 680, £326

South Ribble, 1,310, £382

St. Helens, 1,590, £396

Stockport, 2,570, £421

Tameside, 2,670, £433

Trafford, 2,160, £462

Vale Royal, 940, £409

Warrington UA, 1,830, £437

West Lancashire, 920, £390

Wigan, 3,170, £395

Wirral, 3,040, £404

Wyre, 1,040, £353

Northern Ireland, 13,150 families, £499 average loss

Antrim, 490, £535

Ards, 570, £440

Armagh, 400, £482

Ballymena, 400, £511

Ballymoney, 200, £467

Banbridge, 400, £459

Belfast, 2,300, £505

Carrickfergus, 380, £561

Castlereagh, 430, £483

Coleraine, 410, £459

Cookstown, 310, £525

Craigavon, 710, £460

Derry, 730, £526

Down, 590, £505

Dungannon, 330, £509

Fermanagh, 510, £465

Larne, 270, £457

Limavady, 210, £492

Lisburn, 980, £515

Magherafelt, 270, £503

Moyle, 90, £471

Newry and Mourne, 340, £540

Newtonabbey, 770, £539

North Down, 530, £483

Omagh, 340, £477

Strabane, 190, £511

South East, 46,410 families, £423 average loss

Adur, 390, £405

Arun, 810, £359

Ashford, 820, £381

Aylesbury Vale, 920, £447

Basingstoke and Deane, 1,010, £433

Bracknell Forest UA, 600, £486

Brighton and Hove UA, 1,870, £409

Canterbury, 740, £348

Cherwell, 890, £417

Chichester, 540, £405

Chiltern, 260, £485

Crawley, 690, £487

Dartford, 570, £513

Dover, 600, £332

East Hampshire, 460, £402

Eastbourne, 810, £367

Eastleigh, 730, £379

Elmbridge, 420, £475

Epsom and Ewell, 300, £463

Fareham, 680, £387

Gosport, 750, £448

Gravesham, 510, £486

Guildford, 450, £459

Hart, 380, £484

Hastings, 740, £386

Havant, 700, £374

Horsham, 480, £397

Isle of Wight UA, 1,080, £303

Lewes, 570, £372

Maidstone, 740, £422

Medway UA, 1,770, £421

Mid Sussex, 660, £437

Milton Keynes UA, 2,330, £498

Mole Valley, 240, £442

New Forest, 780, £361

Oxford, 710, £489

Portsmouth UA, 1,570, £396

Reading UA, 870, £493

Reigate and Banstead, 590, £475

Rother, 480, £354

Runnymede, 290, £447

Rushmoor, 580, £494

Sevenoaks, 370, £430

Shepway, 720, £347

Slough UA, 710, £529

South Bucks, 230, £537

South Oxfordshire, 620, £420

Southampton UA, 1,250, £419

Spelthorne, 460, £481

Surrey Heath, 320, £449

Swale, 790, £404

Tandridge, 410, £444

Test Valley, 560, £419

Thanet, 1,070, £389

Tonbridge and Malling, 530, £408

Tunbridge Wells, 430, £391

Vale of White Horse, 630, £426

Waverley, 360, £427

Wealden, 720, £350

West Berkshire UA, 730, £427

West Oxfordshire, 610, £399

Winchester, 420, £437

Windsor and Maidenhead UA, 510, £511

Woking, 310, £472

Wokingham UA, 640, £452

Worthing, 850, £383

Wycombe, 780, £484

South West, 35,870 families, £370 average loss

Bath and North East Somerset UA, 910, £365

Bournemouth UA, 1,210, £383

Bristol, City of UA, 2,550, £415

Caradon, 530, £341

Carrick, 670, £355

Cheltenham, 700, £389

Christchurch, 260, £344

Cotswold, 450, £355

East Devon, 860, £356

East Dorset, 410, £376

Exeter, 950, £384

Forest of Dean, 470, £375

Gloucester, 1,080, £389

Kennet, 500, £430

Kerrier, 810, £352

Mendip, 710, £343

Mid Devon, 610, £340

North Cornwall, 590, £357

North Devon, 780, £336

North Dorset, 350, £370

North Somerset UA, 1,470, £365

North Wiltshire, 850, £397

Penwith and Isles of Scilly1, 520, £349

Plymouth UA, 2,440, £367

Poole UA, 840, £390

Purbeck, 240, £329

Restormel, 940, £350

Salisbury, 760, £389

Sedgemoor, 730, £342

South Gloucestershire UA, 1,710, £385

South Hams, 490, £323

South Somerset, 1,020, £349

Stroud, 660, £331

Swindon UA, 1,440, £438

Taunton Deane, 890, £337

Teignbridge, 860, £344

Tewkesbury, 560, £377

Torbay UA, 1,140, £346

Torridge, 360, £354

West Devon, 280, £348

West Dorset, 550, £347

West Somerset, 220, £332

West Wiltshire, 970, £372

Weymouth and Portland, 530, £339

West Midlands, 44,650 families, £416 average loss

Birmingham, 9,630, £492

Bridgnorth, 300, £335

Bromsgrove, 670, £373

Cannock Chase, 820, £358

Coventry, 3,010, £447

Dudley, 1,830, £377

East Staffordshire, 890, £394

Herefordshire UA, 1,400, £304

Lichfield, 650, £372

Malvern Hills, 430, £365

Newcastle-under-Lyme, 1,240, £371

North Shropshire, 390, £370

North Warwickshire, 460, £379

Nuneaton and Bedworth, 1,150, £409

Oswestry, 350, £327

Redditch, 840, £376

Rugby, 770, £414

Sandwell, 2,530, £492

Shrewsbury and Atcham, 820, £326

Solihull, 1,680, £443

South Shropshire, 250, £309

South Staffordshire, 600, £359

Stafford, 1,120, £391

Staffordshire Moorlands, 750, £340

Stoke-on-Trent UA, 2,440, £406

Stratford-on-Avon, 760, £396

Tamworth, 690, £387

Telford and Wrekin UA, 1,570, £393

Walsall, 1,770, £404

Warwick, 820, £404

Wolverhampton, 1,790, £407

Worcester, 720, £369

Wychavon, 730, £370

Wyre Forest, 780, £335

Yorkshire and the Humber, 42,950 families, £404 average loss

Barnsley, 1,810, £398

Bradford, 4,610, £464

Calderdale, 2,430, £434

Craven, 370, £339

Doncaster, 2,520, £447

East Riding of Yorkshire UA, 2,570, £338

Hambleton, 780, £374

Harrogate, 1,210, £369

Kingston-upon-Hull, City of UA, 2,230, £393

Kirklees, 3,960, £440

Leeds, 6,470, £415

North East Lincolnshire UA, 1,180, £372

North Lincolnshire UA, 1,160, £380

Richmondshire, 470, £411

Rotherham, 1,760, £379

Ryedale, 300, £352

Scarborough, 1,010, £343

Selby, 630, £365

Sheffield, 3,720, £387

Wakefield, 2,340, £398

York UA, 1,420, £348

Wales, 20,790 families, £398 average loss

Blaenau Gwent, 310, £455

Bridgend, 820, £389

Caerphilly, 1,060, £426

Cardiff, 1,950, £432

Carmarthenshire, 1,290, £349

Ceredigion, 420, £374

Conwy, 1,250, £408

Denbighshire, 1,210, £407

Flintshire, 1,330, £396

Gwynedd, 770, £387

Isle of Anglesey, 480, £407

Merthyr Tydfil, 300, £453

Monmouthshire, 470, £370

Neath Port Talbot, 750, £387

Newport, 980, £442

Pembrokeshire, 910, £359

Powys, 960, £345

Rhondda, Cynon, Taff, 1,150, £415

Swansea, 1,360, £395

Torfaen, 770, £408

Vale of Glamorgan, 960, £425

Wrexham, 1,290, £363

Scotland, 41,140 families, £420 average loss

Aberdeen City, 1,280, £454

Aberdeenshire, 1,330, £384

Angus, 910, £392

Argyll and Bute, 560, £388

Clackmannanshire, 340, £421

Dumfries and Galloway, 970, £372

Dundee City, 1,690, £482

East Ayrshire, 900, £410

East Dunbartonshire, 810, £435

East Lothian, 810, £375

East Renfrewshire, 630, £419

Edinburgh, City of, 3,020, £405

Eilean Siar (Western Isles), 150, £362

Falkirk, 1,180, £419

Fife, 2,570, £413

Glasgow City, 5,910, £423

Highland, 1,600, £386

Inverclyde, 560, £395

Midlothian, 830, £413

Moray, 550, £395

North Ayrshire, 1,230, £449

North Lanarkshire, 2,700, £460

Orkney Islands, 110, £372

Perth and Kinross, 1,260, £384

Renfrewshire, 1,880, £434

Scottish Borders, 840, £343

Shetland Islands, 120, £339

South Ayrshire, 770, £410

South Lanarkshire, 2,500, £447

Stirling, 620, £391

West Dunbartonshire, 1,020, £436

West Lothian, 1,490, £451

Notes to editors:

The Resolution Foundation is an independent research and policy organisation working to improve the lives of low-to-middle earners – a group that is below median income, but not heavily reliant on state support. There are six million low-to-middle earning households in Britain, containing 11 million adults. Though not the poorest in society, this group experiences a unique set of pressures, including many of the problems more commonly associated with poverty, from financial insecurity to a struggle to keep up with day-to-day living costs.

Over 2 million people in Britain receive Working Tax Credits (WTC), mean-tested payments provided by the government to boost the incomes of households on low incomes. 470,000 households receive the childcare element of WTC, which provides support for childcare costs. Most are on incomes below £30,000. The planned reduction in support will save the Government £270m next year, rising to £385m in 2014/15.

Analysis of losses to families are based on the latest data published by HMRC, from 2008. Since WTC payments rise year on year, real losses in 2011 are likely to be higher.

Survey finding that as many as one in three working parents are considering giving up their job because they feel unable to cope with childcare costs conducted by Computershare Voucher Services (CVS), polling 1,000 working parents.