Majority of parents slash spending to get through October half term

The cost of living crisis continues to impact Britons

The vast majority of British parents are cutting back on spending to get through the October half term as the soaring cost of living impacts families.

New data suggests that nine in 10 (93 per cent) of parents are spending less on family activities and eating out.

According to Comparethemarket’s latest Household Financial Confidence Tracker, nearly two in three (62 per cent) parents are stressed about the cost of childcare, with nearly half (43 per cent) asking or planning to ask family or friends to pitch in.

Parents are also looking for ways to save money, including doing more free outdoor activities (66 per cent) and only eating out at restaurants with discounts or deals for families (39 per cent).

More than half of those surveyed said they are thinking of cutting back on trips to the cinema and theatre, as well as music and sports events, the survey found.

Childcare costs in the UK are some of the highest in the world, according to data from the Organisation for Economic Cooperation and Development (OECD).

The National Childbirth Trust (NCT) says that the average cost of sending a child under two years old to nursery is £138 per week for part-time care and £263 per week for full-time care.

Families who use an after-school club for five days pay an average of £62 per week. During the holidays, the average price of childcare was £138 per week in the UK as of 2018.

Many Britons are tightening their belts and looking for ways to save money as record inflation pushed the prices of groceries up last week and sky-high energy bills hits households.

Parents are being encouraged to take advantage of the government’s tax-free childcare scheme, which means they could receive up to £500 per child every three months to help with costs.

According to Comparethemarket, more than 384,280 families signed up for the scheme in March 2022, the highest number recorded since it launched in 2017.

However, thousands of parents could be missing out on the scheme, with HMRC estimating earlier this year that around 1.3 million families were eligible.

Alex Hasty, director at Comparethemarket, said: “Half term should be a time for families to spend more time together, but the rising cost of living is causing too many to feel stressed about budgeting for everything from childcare, to the food shop, and activities that will keep the children entertained.”

Gemma Bird, a writer and consumer champion known as Money Mum, offered tips to parents on how they can save money, including preparing for family days out in advance and teaming up with other parents to save on childcare costs.

She recommended: “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 of any good 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.”