The majority of families have to rely on one working parent's income
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Millions of middle-class families with two children are being forced to cut working hours as they struggle to cover childcare costs
According to the research by insurance group Aviva, a Cost Of The Sibling study which interviewed over 1,000 parents with two or more children, found that four in ten families feel it’s not worth both parents working full time after the birth of their second child because of high childcare costs.
Two children is currently the most common family size in the UK, but with full-time childcare for two children costing around £17,000 a year, most said they would be working purely to pay the child-minder. As a result, many have decided one parent should cut their hours or give up work.
Over half who reduce their hours or don’t go back to work after the birth of their first baby do so to spend time with their baby. After the birth of a second child 39 per cent said they stay at home for financial reasons.
Almost half of the parents who don’t return to work after the birth of their second child take at least five years off work potentially amounting to £125,000 in lost earnings.
Louise Colley, head of protection marketing for 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.’
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