The Childcare Conundrum: How Costs Are Reshaping Careers

Balancing the joy of parenthood with a fulfilling career should feel achievable – but for millions of working parents across the UK, it’s becoming increasingly difficult. Childcare costs are soaring, and the impact isn’t just financial. Families are making tough choices about their careers, their lifestyles, and even whether to have more children.

Birth rates in 2023 were at their lowest since records began in 1938, and while the government encourages Brits to have more children, the reality is stark: for many, the cost is simply unaffordable.

To understand the scale of the challenge, we surveyed over 500 working parents and analysed childcare costs across the UK. The findings reveal how affordability pressures are reshaping careers – and why flexibility matters more than ever.

Childcare Affordability: A Growing Challenge

Our survey found that for most parents, childcare is non-negotiable. More than nine in 10 (93%) working parents rely on some form of childcare in the UK – whether that’s full-time nursery, part-time hours, or help from family. Even with recent policy changes, two thirds (64%) say government schemes like 30 free hours fail to meet their needs.

Since September 1^st 2025, eligible working parents in England can access 30 hours of funded childcare per week from the term after their child turns nine months, through to school start. This doubled the previous 15-hour provision for under-twos and threes.

Our research found that the new government scheme has reduced childcare costs for parents by an average of £96 a week, working out to a considerable monthly saving of £416 and an average yearly saving of nearly £5,000 (£4,992).

But worryingly, even with the extra 15 funded hours, a quarter (24%) of parents feel childcare is still unaffordable. Childcare for one child now costs on average £127 per week. That’s £550 per month and £6,600 per year – a significant cost to any household, and even more so if two children are under the age of four.

The problem for some parents isn’t just cost but availability. One in six (13%) stated this was an issue, such as securing a nursery spot for their child.

It’s also important to note that many childcare providers add charges for meals, consumables, and other activities.  Although the new scheme provides a significant saving, childcare remains a considerable outgoing alongside mortgage payments, bills, food, and other living costs.

Therefore, it’s no surprise that nearly a third (30%) of parents said they have a reduced standard of living due to childcare costs leaving them with less disposable income.

Childcare Costs Are Reshaping Careers

Childcare costs don’t just hit wallets – they reshape careers. Our findings revealed that almost two in five (37%) have changed jobs to gain flexibility, and 30% have reduced their working hours to cope with the demand of childcare. Women are disproportionately affected, with 37% reducing hours compared to 24% of men.

Promotions and progression are also on the chopping block. One in six parents (16%) have turned down promotions or opportunities because of childcare, stagnating their careers in the process.

Childcare also has a significant impact on working parents’ lifestyles, with almost one in five (19%) reported increased financial anxiety and for some, the strain on stress levels and finances has sadly proved too much that one in nine (11%) have decided against having more children.

Impact	% of Brits
Change of jobs that offer more flexibility	37%
Reduced standard of living due to less disposable income	30%
Reliance on family and friends to help with childcare	30%
Reduced my/our working hours	30%
Increased financial anxiety and stress	19%
Turned down promotions or opportunities	16%
Decided against having further children	11%

Table A. Impact of Childcare on working parents

What Parents Really Want from Employers

Forget ping-pong tables and happy hours – parents need meaningful benefits that genuinely make life easier. Our research asked parents what their top three priorities when choosing a job were, and it found that flexible hours (48%) now outrank salary (47%) as the most valued job perk, signalling a move towards more practical support that fits real-life circumstances.

Remote working is another top priority, with more than a third (35%) of parents saying they’d choose a role that allows them to work from home. For many, this flexibility means being able to manage childcare without sacrificing productivity.

And it’s not just flexibility. A fifth of parents (21%) want subsidised childcare, and 14% would value onsite childcare. These findings signal a major shift in workplace expectations and a huge opportunity for SMEs to adapt and stand out as family-friendly employers.

Commute distance and career progression, usually top priorities for employees, were at the bottom of the list for parents – only one in 20 (5%) said career progression would be in their top three.

Priority	% of Brits
Flexible hours	48%
Salary	47%
Remote working	35%
Subsidised childcare	21%
Job security	15%
Onsite childcare	14%
Increased parental leave	13%
Supportive company culture	12%
Commute distance	11%
Career progression	5%

Table B. What Workers Value Most When Choosing a Job

Why Co-Working Spaces Are Part of the Solution

Co-working spaces aren’t just about trendy interiors – they offer built-in flexibility that traditional offices can’t match. For SMEs, this means no long-term leases, scalable space for hybrid teams, and access to vibrant communities that support wellbeing.

And sometimes, unique benefits you won’t find elsewhere. For example, at Work.Life, we recently trialled a Kids Club service in August, giving parents peace of mind while they worked. It was a simple idea with a big impact – and it’s an example of how flexible workspaces can help businesses support working parents.

Following its success, Work.Life are planning to host more of these in the near future.

The £100,000 Childcare Conundrum

All three- and four-year-olds in the UK are entitled to 15 hours of free childcare weekly, regardless of income. However, if either parent earns over £100,000 a year, the 30-hour entitlement is lost – creating what many call the “affordability cliff” that can be a huge issue for some parents, particularly those who work in London where wages are higher.

The £100,000 threshold for losing childcare benefits hasn’t moved since 2017, even though wages and living costs have risen significantly. If it had kept pace with inflation, the limit would now be over £130,000. This means more families are being pulled into the “cliff edge” every year – not because they’re suddenly wealthy, but because the threshold is outdated.

As a result, parents face a tough choice: turn down promotions or deliberately cap their income to keep vital childcare support. In the 2022/23 tax year alone, 32,000 Brits deliberately held their earnings below £100k for this reason. It’s a clear sign that current policies aren’t aligned with today’s economic reality, and working parents are paying the price.

Employers Must Play Their Part

While government schemes provide some support, they often don’t go far enough, and the reality is that businesses can play a huge role in supporting working parents and helping them thrive at work. So, what can employers do to make a real difference?

Olya Yakzhina, Head of People here at Work.Life has outlined three actionable steps for employers to make a real difference:

1. Offer Flexible Hours and Hybrid Options

“Rigid schedules don’t work for parents juggling nursery drop-offs and school runs. Giving employees the freedom to adjust their hours or work remotely when needed can significantly reduce stress and improve productivity.”

2. Consider Co-Working Memberships for Teams

“Traditional offices often lack the adaptability parents need. Co-working spaces provide built-in flexibility, shorter leases, and vibrant communities – all without the overheads of a permanent office. For SMEs, this is a cost-effective way to create a parent-friendly workplace.”

3. Provide Childcare Support

“Whether it’s subsidising childcare costs, partnering with local providers, or offering onsite childcare solutions, these benefits go a long way in easing financial pressure. At Work.Life, our Kids Club initiative we trialled was a massive success, giving parents peace of mind while they work.”

Conclusion

Childcare costs are reshaping the way parents work, and businesses have an opportunity to make a positive impact. By embracing flexibility and exploring solutions like co-working spaces, employers can create environments where parents thrive without compromising their careers.

At Work.Life, we’re proud to support this change through flexible workspaces that can work for everyone.

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