Cost of childcare for the holidays rockets by 10%

Research by the Daycare Trust found the average outer London family now pays £91.83 a week - up from £83.48 last year.

Inner-city parents can expect to pay £68.25 - up from £63.37, a rise of almost eight per cent in a year.

The survey, based on the cost of holiday childcare provided by councils, shows that across England, the average price has risen 10.1 per cent to £91.56 per week, the largest increase since 2003.

Emma Knights, chief executive of the Daycare Trust, said the escalating costs and a lack of childcare providers were making it difficult for parents.

"High-quality holiday childcare is essential for working families," she said. "Parents should not be put in a position where they have to choose between earning money to support their family and stopping work to care for their children."

She said holiday childcare provided a stimulating environment for children. "It is deeply worrying that parents are reporting a lack of holiday childcare provision and that average prices are rising well above inflation," she said.

The typical weekly cost of holiday childcare has risen to £87.43 per week in Britain. Nearly threequarters of family information services in England responding to the survey said parents had reported a lack of holiday childcare places. Most reported gaps in provision for disabled children and those aged 12 and over. The Daycare Trust issued a series of recommendations to deal with the problem, including:

Subsidising out-of-school activities for 11- to 14-year-olds.

Increasing the help given with childcare costs using tax credits.

Giving councils the means to develop services in poorer areas and provide free places for those missing out.

A spokeswoman for the trust said: "It is urgent that provision of holiday childcare is increased ... This will require sustained subsidy to ensure all parents are able to access such care. We also need to make sure there are places for those with disabled children, for parents needing out-of-hours care, for further education students and for parents of under-threes who want to train."

The Government already provides some funding for childcare costs. This includes the working tax credit scheme and an employer-supported childcare voucher system, worth up to £1,195 a year.

In London, the Childcare Affordability Programme subsidises the cost of full daycare by up to £30 a week for parents on low incomes.