Britain’s grandparent army save Britain £17bn annually in childcare costs
Over two thirds (67%) of UK grandparents are providing childcare for their grandchildren, according to research from RIAS, the over 50s specialist insurance provider.
In respect of those grandparents aged 65 and over, this figure stands at 57%. Today’s report shows that for the 21% of grandparent child-minders who say they have increased the amount of care provided in the last 12 months, the increased workloads of their children and pressures to please their employers in order to keep their jobs or get a pay rise (41%), has forced many grandparents into the role, leading to financial difficulties for some. Almost a quarter (22%) of grandparent childminders reach into their savings and 5% are forced to dip into their overdraft to cover activities and living costs.
9.1 million now make up Britain’s Grandparent Army as the number of Grandparent childminders increases by 49% since 2009
Grandparents have an average of four grandchildren each in the UK
Grandparent childminders spend an average of 9 hours a week looking after their grandchildren – saving parents £1,902 on childcare fees annually
Collectively grandparents contribute £9bn annually to clothes, toys and hobbies, pocket money, holidays and savings
99% of grandparent childminders get no payment for their time, despite some forking out £88 per month to support their families
Increased workload and pressure to impress employer and get a pay rise (41%) are main reasons for grandparents increasing the amount of childcare provided
Expense of looking after children leads a quarter of grandparent childminders dipping into savings (22%) and 7% going into debt.
Grandparents in the North West are the most likely to provide childcare with 74% looking after their grandchildren - they also put the most hours in averaging 12 hours per week
Now in its sixth year, the RIAS ‘21st Century Grandparenting’ Report reveals that the cost and the time commitment of being a Grandparent Childminder has rocketed since 2009. The nation has seen an exponential 49% increase in the number of grandparents providing childcare over the last five years, with 9.1 million currently drafted into the ‘Grandparent Army’, up from 6.1 million in 2009.
Despite many grandparents reaching a stage of life where they have the luxury of free time, two thirds of grandparents (67%) now take care of their grandchildren for an average of 9.1 hours a week – up 11% on last year and 72% on 2009’s figures. This sacrifice saves their children an average £1902 a year in child care costs, adding up to an annual nationwide saving or unofficial ‘child benefit’ of £17.3 billion. This is substantially more (a 121% rise) than the £860 saved per family in 2009.
Great financial expectations
On top of the 473 hours of childcare they provide each year, Grandparents collectively now spend £9bn - that’s an average of £88 a month for those who do contribute (more than £1,000 a year), regularly providing financial contributions towards toys, clothing, pocket money, savings, hobbies and leisure activities. This financial commitment is unaffordable for some, with 22% of grandparent childminders admitting they are forced to dip into their hard earned savings to pay for their grandchildren, whilst 5% are even slipping into their overdrafts.
Grannies and granddads working hard
Although the majority of grandparent childminders love spending time with their grandchildren, 29% say it is strenuous and they feel tired after. 14% say that although they enjoy it, it is expensive and almost one in 10 (9%) say it is hard work and feels like a job to them.
Regional heroes
Research has found that Grandparents in the North West are the most likely to provide childcare with 74% looking after their grandchildren - they also put the most hours in averaging 12 hours per week. Those in the South East are less likely to care for their grandchildren but it’s still high with over half (57%) taking on the role. Scottish grandparents it seems are spending the most on activities for their grandchildren per month with an average of £40.
Peter Corfield, Managing Director at RIAS, comments: ““As parents feel the pressures of everyday life, from increasing work commitments to rising childcare costs, it’s getting ever more important to have grandparents on hand to help out. Grandparents not only continue to play a vital life line for UK families, but also bring knowledge and experience that benefits generations. However they are not only contributing their time but often their savings too. For those who rely only on a state pension, it can be up to 18% of their annual income on activities and costs of looking after the grandchildren, meaning they not only make an enormous and selfless contribution in terms of time, energy and experience but financially too’’.
Jane Fearnley Whittingstall, author and grandparent of six said “I know how generously and ungrudgingly grandparents give up their time to help their grandchildren, but I had no idea how much the need for their help has increased in the last few years. It’s clear that some families simply couldn’t survive without it.
In the last twelve months its value was more than £17 billion. Another £9 billion can be added to that for the amount grandparents spent on their grandchildren – always given willingly in spite of the fact that for some it involves serious financial sacrifice. It's all evidence of the special bond between grandparent and grandchild.”
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