Childcare costs up by a third in just five years

Nurseries face being accused of profiteering after costs rose by a third to as much as £11,000 despite the Coalition spending more on childcare.

The Family and Childcare Trust Survey found that despite heavy Government spending, childcare prices have continued to soar in recent years.

With the economy recovering, nurseries are now choosing to dramatically put up prices that were kept down during the recession, the report said.

It warns that nurseries have been dramatically putting up prices after keeping them down during the worst

The cost of sending a toddler to nursery part-time has risen by around a third over the last five years, with parents now forced to fork out £6,000 a year on average. It is the first time that these costs have broken through this barrier, the trust said.

In general, prices have continued to increase at levels above the rate of inflation, the report reveals.

The cost of full-time nursery care has risen to a staggering £11,000 a year, the report found.

The survey found that across Britain, it now costs around £115.45 on average to send a child aged under two to nursery for 25 hours a week - a total of £6,003 per year. This is the first time that these costs have broken through this barrier, the trust said.

"Over the last five years, while there have been deep cuts to other public services, the coalition Government has increased spending on childcare," the report said.

"But despite this welcome investment, this year's survey finds childcare prices have continued to increase and the gaps in provision remain unfilled.

"The reality is that for too many families it simply does not pay to work."

A Department for Education spokesman said: "We understand that the cost of childcare can be an issue for many parents, but this report only relates to the prices parents pay after they receive the Government's offer of 15 hours of free childcare.

"It therefore neglects the record amount of fully funded childcare we are giving - savings worth a maximum of almost £9,000 per child.

It came as Nick Clegg, the Deputy Prime Minister, said that under Liberal Democrat plans, working parents of very young children would be offered 15 hours of free early education a week, saving families about £2,600 a year.

There would also be a universal entitlement to free childcare for all two-year-olds, potentially saving parents thousands of pounds each year, and a pledge to boost funding for poor pre-schoolers.

However, he will face criticism from tens of thousands of stay at home mothers amid accusations that the Government is attempting to force women who choose to look after their children back into the workplace.

Mr Clegg has already said that one million more women should be in work within five years.

Those plans have faced heavy criticism from groups including Mothers At Home Matter, who have accused the Government of ignoring the needs of women who choose to remain at home to look after their children.