24% of parents could leave workforce if childcare costs rise, research reveals

Almost a quarter (24%) of parents said they could be forced to leave the workforce if childcare costs rise further, according to research by REBA in association with Wealth at Work. 

59% said higher nursery fees would mean cutting working hours or leaving work altogether. 

More than half (55%) of carers who had reduced their hours to care for others said they have been unable to save as much for the future.

54% of employers said they currently offer or plan to offer enhanced financial support for parents and carers.

Low financial literacy is also a barrier, with 71% of employers saying it stops employees from achieving a good retirement outcome and 39% of UK adults not confident in managing their money. 

A further 39% of employers said many staff do not know where to start when looking for support.

Jonathan Watts-Lay, director at Wealth at Work, said: “Caring responsibilities are placing significant financial pressure on many people, whether through the high cost of childcare or the need to reduce income to support an elderly relative. 

“These pressures can make it difficult to manage day-to-day finances, but they can also have a lasting impact on an individual’s ability to save for the future.