15% of parents with a child under five say the cost or availability of childcare has made them quit their job in the past twelve months.

Research from the Early Education and Childcare Coalition (EECC) found an additional 20% have considered quitting because of the cost and availability of childcare in their area.

Around one in three (32%) of parents of under-fives had to borrow money from family or friends, or take out a credit card or a loan as a direct result of childcare fees in the last 12 months. One in five (22%) have had to cut back on food shopping due to childcare fees.

Sarah Ronan, director of the EECC, said: “From September, the government will be purchasing 80% of childcare in England, yet it continues to pay providers less than it costs to deliver those hours. If providers are to stay open, they have to pass on that shortfall to parents with fee increases. The reality is that continued underfunding is pushing up costs for parents, holding down wages in the sector, and driving staff shortages.”

June O’Sullivan, chief executive of London Early Years Foundation (LEYF), said: “Parents were promised a childcare revolution, but what they’re getting is a childcare crisis. Despite last year’s increase in funding, long-standing underinvestment has left our infrastructure vulnerable. This means the sector is being forced to pass on rising staff costs and rents, food and utilities increases, combined with the unexpected employer National Insurance contributions hike – and that’s just to keep nurseries open.”

Tim McLachlan, chief executive of National Day Nurseries Association (NDNA) said: “We know from our research that providers work hard to shield parents from the true cost increases. But when staffing costs go up by 15% and government funding only rises by around 4%, even some pre-school children know the first figure is much higher than the second.”

He added: “The rate the government pays to providers doesn’t cover the cost of delivery and explicitly excludes the cost of meals, snacks and consumables which is why nurseries have to ask parents to pay for these costs.”