Credit, Collections & Insolvency News
According to comparethemarket.com’s latest Household Financial Confidence Tracker, more than a third (38%) of households with children at home are having to take on additional debt or borrowing specifically over the summer holidays to afford everyday bills and childcare.
The research found that to try and save on childcare costs, almost one in two parents (46%) are relying on family or friends to help over the summer holidays, with 50% using annual leave for childcare reasons.
The summer holidays can be a difficult time for parents trying to keep their children entertained while balancing work. However, with the cost-of-living continuing to increase, a third (33%) of households are having to cut back on spending on things to entertain their children compared to last year. Some of the main activities being cut back include eating out (72%), going to the cinema, theatre or music events (57%), spending money on clothes (55%), or holidays (54%). On average, parents will spend over £380 on entertainment costs alone over the summer holidays.
As families explore different ways to save money and budget accordingly over the summer holidays, more than three-quarters (77%) are trying to do more free activities outdoors, such as walking, hiking going to parks, or free events (57%). Other alternatives parents are trying to take advantage of include going to restaurants which have a free meal or discount for children (51%), and 2 for 1 deals at entertainment venues (45%). Some parents are also making DIY games at home to keep children entertained (38%).
Other ways to save on childcare costs include the government’s tax-free childcare scheme. The money can help towards the cost of holiday clubs, before and after-school clubs, childminders and nurseries, and other approved childcare schemes. However, a quarter (25%) of parents surveyed have taken advantage of the scheme and its benefits. More than 384,280 families used Tax-Free Childcare in March 2022 – the highest number of families recorded using the scheme since it was launched in April 2017 – but thousands more could be missing out. Research published earlier this year by HMRC estimated that about 1.3 million families could be eligible for this government support. comparethemarket.com is urging families to check if they could be eligible for this tax-free support.
Alex Hasty, Director at comparethemarket.com said“While the summer holidays are usually a time when families can enjoy spending more time together, for parents, it can be difficult trying to balance work and keeping the children entertained. Combined with the rising cost-of-living, it’s no wonder why so many feel concerned about budgeting for family activities and the cost of childcare over this period.”
“During these difficult times, it is crucial people engage with different aspects of their finances. Looking at existing bills, such as motor and home insurance, is one of the best ways to check you are getting value for money. Many parents will also be trying to save money by making the most of free activities and events, cutting down spending on eating out or using two-for-one discounts instead. For those looking to enjoy themselves out and about for less, it’s worth noting that if you take out a qualifying product via comparethemarket.com, you get 12 months access to rewards. This includes 2 for 1 food at selected restaurants, 25% off coffee and pastries at Caffè Nero and 2 for 1 cinema tickets for two people on Tuesdays or Wednesdays at participating cinemas.”
Gemma Bird, also known as Money Mum, provides further tips on how to save money on family activities and childcare for the remainder of the school holidays said. “If you’re planning a family day out, one of the best things to do is prepare in advance. You could save money by looking online beforehand and finding out a bit more about the place you’re visiting – whether that’s finding cheaper parking, comparing ticket prices for public transport at different local stations, or having lunch boxes prepped the night before to avoid spending money on eating out. If you want to dine out, see which stores and restaurants offer free or discounted meals for children, so you don’t need to spend more than you need.”
“If you’re able to, it can be useful to team up with fellow parents to help look after each other’s children and save on childcare costs. You could set up house rotations, choosing suitable days to look after each other’s children and splitting the cost on any food or entertainment. Alternatively, for families eligible to apply, the government offers a tax-free childcare scheme. It’s also worth checking with your local council to see if they run a funded play scheme or summer school equivalent.”