Many parents in debt find themselves adding to their debts over the summer so that they can arrange childcare or summer activities for their children.
We know that family costs can soar once the kids are on school holiday. Budgeting for the cost of childcare as well as simply keeping the kids entertained this summer can feel overwhelming; especially when parents are already dealing with debt.
Although this isn’t a new problem for parents, with rising costs impacting people across Scotland, stress and worry about how to spread the budget is growing.
Childcare Costs during Summer School Holidays
For many, paying for full-time childcare over the summer is unaffordable. With budgets already being squeezed to cope with rising costs, paying for the essentials over summer can push family finances over the edge.
In the UK, it cost an of average £943 for a school-age child to receive summer childcare in 2023; a 3% rise on the reported cost from the previous year. It’s important to note that on top of high costs, childcare over the summer can also be difficult to secure depending on where you live.
Some partners are able to organise alternate shift patterns so that one parent is always home to take care of the kids as a replacement for childcare. It’s also possible for some parents to arrange a working from home arrangement to look after their children whilst working. Although a good choice as a money saving decision, both of these options can lead to increased stress, reduced quality time with your partner, as well as decreased productivity at work.
There are limits to the possibilities of saving on childcare costs. Parents may find themselves with fewer job options due to their need for flexibility, parents can be forced to reduce their working hours to find time to look after their children and may use their holiday time to watch the kids; meaning that they don’t benefit from relaxing time-off. For single parents without friends or family who are able to help out, they can have no choice but to pay for childcare.
You may be eligible for childcare funding in Scotland.
Although working families can benefit more from the financial support in Scotland such as free school meals, bus fare and lower-cost childcare in comparison to across the UK, many households still struggle to meet a socially acceptable standard of living. This is the case even for parents who work full-time on the national living wage.
In the UK, the average cost of nursery childcare for a child under 2 years old is £148.63 per week for 25 hours, or £300 a week for full-time childcare. In Scotland, the average price for holiday childcare was reported at £157.22 per week in 2023.
Debt Help for Parents
If you are finding it challenging to cover the monthly necessities and make repayments to your debts, Trust Deed Scotland® can advise you on a range of debt solutions to help you manage your debt and free up your money; so you can have less worry about how you’ll cover childcare costs over the summer.
45% of our customers currently in Scottish debt solutions are raising one or more child¹. Having advised nearly half of our customers who have at least one child to support, Trust Deed Scotland® are well-experienced in ensuring the most beneficial debt advice for you and your family.
We can talk you through all available debt solutions in Scotland, including Trust Deeds, the Debt Arrangement Scheme (DAS), Minimal Asset Process (MAP) and Sequestration; helping you to choose the right debt solution for you and your family’s circumstances.
Get in touch to put a plan in place for your future.
¹ data from February 2024.