Parents of kids in nurseries may have to reassess their toddler rainwear budget after being warned of price hikes in the childcare sector.

Chief executive officer at nursery search tool Childcare.co.uk Richard Conway warned the rising cost of overheads is being passed on to the end customer.

He added: "Many have large waiting lists which means there is not enough competition and hence they can increase costs, without losing customers."

The expert was reacting to a recently published report by the Daycare Trust, which revealed the cost of nursery care has risen by 5.1 per cent in a year, which is over double the rate of inflation.

This followed a study by the Child Poverty Action Group last August, which saw its chief executive Kate Green call for a "recession survival package" for cash-strapped families.

She said if the government did not offer adequate support, many mums and dads could turn to loan sharks to solve their cashflow situation, a move likely to plunge them into huge debt.

Posted by Michael StevensonADNFCR-3005-ID-19617875-ADNFCR