Childcare costs UK: Why the crisis is costing businesses more than you think

Community & impact
Estimated read time: 5 mins
Last updated: 06/08/2025

The UK childcare crisis has reached a breaking point. With childcare costs, UK families face averaging £1,076 per child for just six weeks of summer holidays, working parents are struggling more than ever. But this isn’t just a family problem – it’s a business crisis that’s quietly draining productivity from companies across Britain.

The three words that strike terror into every working parent’s heart aren’t “budget cuts ahead” or “mandatory overtime.” They’re far more innocuous: “school summer holidays.”

Whilst children celebrate their freedom, parents face a harsh reality check. Six weeks of summer holidays. Twenty-eight days of statutory annual leave. The maths simply doesn’t add up.

The hidden cost of “happy holidays”

The numbers tell a stark story about nursery costs UK families are grappling with. According to recent data from children’s charity Coram, covering Britain’s six-week summer break now costs an average of £1,076 per child. Some regions are seeing year-on-year increases of up to 13%, making summer holiday childcare increasingly unaffordable for ordinary families.

But the financial burden is just the tip of the iceberg. Recent research shows that 1 in 3 working parents say school holidays negatively impact their work performance, and more than 50% of employers report productivity dips during school breaks.

The reality? Schools are closed for an average of 13 weeks per year – that’s 65 working days. Meanwhile, statutory minimum annual leave is just 28 days. The school system, designed in an era when one parent typically stayed home, is fundamentally incompatible with modern working life and flexible working for parents.

More than half of parents want change

Recent research reveals that 53% of British parents would support shortening the summer break from six weeks to four, according to a survey from charity Parentkind. The reasoning is practical: a four-week break would be more manageable for working parents juggling career demands with childcare during summer holidays, whilst children would find it easier to pick up where they left off academically.

Yet the system remains unchanged, leaving millions of working parents to navigate what one employment lawyer called “a constant juggle logistically and emotionally and a financial hole with cost of holiday clubs.”

The invisible load on working parents

The impact extends far beyond logistics and finances. Working parents carry what experts call an “invisible load” – the mental burden of planning, organising, and worrying about childcare arrangements whilst trying to maintain professional performance.

This invisible load affects not just individual families, but entire organisations. When a significant portion of your workforce is stressed, distracted, or forced to take unplanned time off, productivity inevitably suffers. The childcare shortage UK businesses face translates directly into reduced employee retention and increased recruitment costs.

A workplace solution: Our innovative response

Recognising that “workplaces are full of parents” and this is “a workplace issue, not just a parent issue,” we decided to step up with a creative solution to the summer holiday childcare crisis.

On 11 August, we transformed our flagship St Cross Street location into a vibrant children’s club, giving our members the opportunity to bring their kids to work for a mindful, play-led learning workshop run by emotional wellbeing specialists The Happy Human Project.

The response was overwhelming. All 15 spaces were “snapped up in minutes” with a waitlist for dropouts – clear evidence of the desperate need for working parent support.

“At Work.Life, our mission is to make people’s work-lives happier, and for working parents, that happiness can be seriously tested over the summer holidays,” explains our CEO and Co-Founder Elliot Gold. “As a parent myself, I know how challenging it can be to juggle work and childcare, so we wanted to trial something that genuinely supports our community.”

The business case for supporting working parents

Our initiative represents more than just good corporate citizenship – it’s smart business strategy that addresses the real costs of the UK childcare crisis.

Consider the alternative costs:

  • Reduced productivity during school holidays
  • Increased absenteeism and stress-related sick days
  • Higher staff turnover as parents seek more flexible employers
  • Recruitment costs to replace talented parents who leave the workforce
  • Lost institutional knowledge and experience

Charlotte Clark, Director at The Happy Human Project, notes: “Affordable childcare is a real challenge for many parents, and this initiative not only helps solve that problem, it also ensures children are gaining vital emotional regulation skills in a safe, supportive environment.”

Beyond sticking plaster solutions: What employers can do

Whilst our kids club represents an innovative approach, the solution to Britain’s childcare crisis requires broader systemic change. However, employers don’t need to wait for government intervention to provide employer childcare benefits:

Immediate actions:

  • Offer flexible working arrangements during school holidays
  • Consider compressed working weeks or job-sharing options
  • Provide emergency childcare support or vouchers
  • Create parent networks for informal childcare sharing
  • Allow children in the office during school holidays (where appropriate)

Longer-term strategies:

  • Partner with local childcare providers for discounted rates
  • Invest in on-site childcare facilities
  • Offer childcare salary sacrifice schemes
  • Advocate for policy changes around school holiday lengths
  • Build family-friendly policies into your employer brand

The competitive advantage of family-friendly workplaces

In today’s tight labour market, supporting working parents isn’t just the right thing to do – it’s a competitive necessity. Companies that genuinely understand and address the challenges faced by working parents will attract and retain top talent, whilst those that ignore these issues will find themselves at a disadvantage.

Our initiative demonstrates that sometimes the most effective solutions are also the simplest: recognising that your employees are whole people with complex lives, and finding creative ways to support them through the challenges.

The path forward

The summer holiday childcare crisis won’t be solved overnight, but it will be solved by organisations willing to think differently about work-life balance. Whether it’s transforming office space into temporary childcare, offering flexible working for parents, or simply acknowledging the invisible load carried by working parents, every step matters.

Because when parents can breathe, businesses can thrive. And when children are safe, supported, and engaged, everyone wins.

The question isn’t whether your organisation can afford to support working parents through the summer holiday juggle. It’s whether you can afford not to.


Key takeaways

  • The crisis is expensive: UK families face an average of £1,076 per child for six weeks of summer holiday childcare, with costs rising 13% year-on-year in some regions

  • It’s a business problem: 1 in 3 working parents report reduced work performance during school holidays, whilst 50% of employers see productivity dips during school breaks

  • The system doesn’t work: Schools close for 65 working days annually, but statutory leave is only 28 days – creating an impossible gap for working parents

  • Demand for change is high: 53% of British parents would support shortening summer holidays from six weeks to four weeks

  • Solutions exist: Employers can offer immediate support through flexible working, emergency childcare vouchers, and allowing children in offices during holidays

  • It’s a competitive advantage: In a tight labour market, family-friendly policies help attract and retain top talent whilst reducing recruitment costs

  • Small actions matter: Our kids club initiative was fully booked within minutes, showing the desperate need for creative workplace solutions

Our summer kids club initiative is part of our ongoing mission to make work-lives happier. As a B Corp certified company operating 14 coworking spaces across the UK, we serve over 8,000 members from freelancers to large businesses.

Click to view Price