Families are facing summer holiday childcare costs of up to £180 per child per week, despite recent government announcements aimed at easing financial pressures, a finance expert has warned.
Chancellor's Announcement
Earlier this month, Labour Party Chancellor Rachel Reeves delayed a hike in fuel duty beyond September and offered VAT relief for businesses that provide reduced prices to families. However, personal finance expert Sarah Coles of investment platform AJ Bell has cautioned that these measures are "not necessarily a massive game-changer" for working parents grappling with childcare expenses.
Cost Breakdown
According to the Coram Holiday Childcare Survey 2025, summer holiday care costs around £180 per week per child. Coles explained that while the government's free 15 or 30 hours of childcare applies during term time, it can be spread over the whole year, but those with 15 free hours effectively see that fall to just 11 hours per week when stretched over 52 weeks.
"For many working parents, the cost of all of these things is a drop in the ocean compared to the small fortune they hand over for childcare during the summer," Coles said.
Savvy Savings
Coles noted that the most cash-strapped families have already become adept at entertaining children without spending money, although free bus travel could help them explore a wider area. Savings-savvy families often use vouchers, loyalty points, and free children's meal offers at cafes to reduce costs, meaning they will see less benefit from the VAT relief.
"For those paying full price for a day at the theme park, it's a handy discount, but it's still going to be one of the more expensive days of the year," she added.
Tax-Free Childcare Scheme
Coles highlighted the tax-free childcare scheme as a potential lifeline. For every £8 parents put into their account, the government tops it up by £2. This scheme only covers providers signed up to the program, but if they are on the list, families could save hundreds of pounds over the six most expensive weeks of the year.
