Millions of two-child families are being forced to cut their working hours as they struggle to cover the cost of childcare, according to new research.
The Aviva Cost Of The Sibling study interviewed 1000 parents with two or more children, and suggests that four in ten families feel it is not worth both parents working full time, after the birth of their second child. Two children is currently the most common family size in the UK, but with full-time childcare for two children costing nearly £17,000 a year, many of these families say they would be working purely to pay the child-minder. As a result, they have decided that at least one parent should cut their hours or give up work.57% of people who reduce their hours or don’t return to work after the birth of their first child, do so to spend more time with their new baby – the main reason given for staying at home. This changes with the second child, with financial factors being the single biggest influence.
Louise Colley of Aviva says: “If a parent gives up work this often means the family needs to tighten its belt financially. Unfortunately, as a result, life insurance can be overlooked, but the consequences of having no cover in place can be huge - especially for a family already relying on just one income. Should the worst happen, having to return to work to generate an income and cover childcare costs could be a tremendous strain. Life insurance can cost as little as £5 a month and could ensure child care fees are taken care of and - more importantly - replace some or all of the lost income.”
Life insurance: News update: 19 July 2010