Parents in England are now paying an average of £127 a week for part time childcare, figures show.

Nursery prices have risen 3% in the past year – pushing annual costs to £6,000 per child, according to the latest annual Childcare Survey.

In Inner London – the most expensive region in the UK – the price of a part time nursery place for a child under two is £175 a week, or £9,100 a year, compared to an average £108 a week in Yorkshire and Humberside, or £5,600 a year.

The report by Coram Family and Childcare, also found that just over half of local areas have enough childcare to support all working parents full time.

This means even if families can afford to cover it, they may struggle to find availability.

In some areas, there are even bigger gaps. Less than a quarter of local areas have enough spaces to cover disabled children and parents working outside the usual 9 to 5.

What childcare support is available?

In England, most parents are able to claim support through 30 hours free childcare and Tax Free Childcare.

However, when Coram Family and Childcare asked local authorities what impact the 30 hours initiative has had on their local childcare market, the results were bleak.

One in four local authorities said 30 hours is pushing up childcare prices for 3 and 4 year olds outside funded entitlements.

Meanwhile, one in three added that the scheme is having a negative impact on the financial sustainability of childcare settings.

There are seven different ways families in England can get help with childcare – all with different eligibility criteria.

However, families may be missing out on the help that’s available because of flaws in the system.

The Coram Family report said in 94% of local authorities, a full time nursery place for a child under two is now more expensive than the maximum costs supported under Universal Credit and Working Tax Credit.

Families in these areas will find that they may end up worse off working, or working more hours.

Megan Jarvie, at Coram Family and Childcare, said: "Childcare is every bit as vital as schools, healthcare or transport: it supports parents to work, provides our economy with a reliable workforce and boosts children’s outcomes.

"But too many parents remain locked out of work by high childcare costs and low availability, and too many children miss out on high quality childcare, and the benefits to their life-chances that come with it.

"Recent Government investment is welcome, but as prices continue to rise, families remain at risk of getting left behind. For many parents, making work pay is an uphill struggle."

It’s now calling on the Government to streamline the current maze of childcare support schemes so that families can understand what they are entitled to and access the childcare they need.

"We need a simple and responsive childcare system that makes sure every parent is better off working and childcare quality is high enough to boost children’s outcomes throughout life."

Neil Leitch, at the Early Years Alliance, added: "Since current funding rates were set in 2015, early years providers have endured rising wage and pensions obligations, as well as business rate rises, mortgage and rent hikes and countless other cost increases. As such, many have been forced to increase fees just to keep their heads above water, and this has had a particular impact on parents with younger children who aren’t eligible for the funded schemes.

"Enough is enough. It’s time for the government to commit not only to investing properly into the sector, but also reviewing funding level on an annual basis"

The National Day Nurseries Association says the Government must overhaul Universal Credit to allow it to work for parents.

"Payments must be made up front to prevent parents and providers getting into debt trying to secure childcare so they can return to work," a statement said.

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