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A recent study has shown how the high costs of childcare as well as the travelling costs associated with commuting are making it impossible for many women to return to work. Even a fulltime job could leave them out of pocket, something those families currently undergoing IVAs (Individual Voluntary Arrangements) clearly can't afford.

The study shows that the amount of women who are staying at home to look after their children rather than going to work has risen by 32,000 compared to the same time last year.

The research is based on data in the latest ONS Labour Force Survey and focuses on the number of women classified as economically inactive due to caring for their family. Those families with IVAs in place are finding it difficult as a result to improve their financial situation.

It is no wonder so many parents are opting to stay at home when you take into account the current cost of childcare in the UK. The average cost of childcare is £385 a month, which rises for £729 for children under two. Part-time care costs an average of £193 a month, or £364 for the under-twos. It is clear to see why those families on IVAs can simply not afford to have both parents at work, unless of course the salary they are earning is significant enough to comfortably pay for childcare costs with money left over to contribute towards IVAs.

And for those on IVAs there is far more to worry about than just the costs of childcare. An average worker spends £120 on expenses associated with their jobs such as fuel, clothing and food, as well as £147 on school-related costs. For any individual on a modest wage there is practically no money left after these deductions have been made. So for many, the best decision they can make is to care for their children at home.

Thus far this article paints far too simple a picture of what is a more complex issue. It is sad that the presence of IVAs can prevent people from working. Parents in particular report reasons other than simply money for working. Many people enjoy their jobs and relish the interaction and mental stimulation it brings. Without this many individuals are left feeling unfulfilled.

More worrying still is the fact that the situation is predicted to worsen as the increase in the costs of childcare shows no signs of abating. Many couples, regardless of IVAs, will have to consider whether it is still financially viable for both to work, or whether they would be better served living off one wage whilst caring for their children at home.

If you are struggling financially then you should contact a professionally qualified IVAs specialist sooner rather than later as financial problems will only deteriorate with time. The IVA Service will provide you with all the information you need relating to any aspect of IVAs, as well as the other debt solutions available which may be appropriate to your particular circumstances.

By Andrew Liberty
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