Nine in ten parents cut back on spending to get through half term

Nine in ten (93%) parents are cutting back on spending to get through the October half term, according to Comparethemarket’s latest Household Financial Confidence Tracker. The research also found that the cost of childcare during the holidays is causing stress for the majority of families in the UK. Almost two in three (62%) parents with children at home are stressed about childcare during half term as a result of the rising cost of living.

Parents are turning to friends or family to save money on childcare costs. Comparethemarket found that more than two in five (43%) have asked, or plan to ask, friends or family to look after their children this half term. 

Many parents are looking for ways to save money on family activities with two in three (66%) planning to do free outdoor activities, and 39% choosing to only eat out at venues with discounts or deals.

More than two in three (71%) parents plan to save money by eating out less this half term, while 50% will reduce spending on day trips, according to Comparethemarket. Over half (54%) are thinking of cutting back on trips to the cinema and theatre, as well as sports and music events. 

Many families could also benefit from the government’s tax-free childcare scheme. Parents can receive up to £500 per child every three months to help with childcare costs. More than 384,280 families used Tax-Free Childcare in March 2022 – the highest number of families recorded using the scheme since it was launched in April 2017 – but thousands more could be missing out. HMRC estimated earlier this year that approximately 1.3 million families could be eligible for the scheme. Comparethemarket is urging families to check if they can sign-up to receive the discounted childcare.

Alex Hasty, director at Comparethemarket, said:

“Half term should be a time for families to spend more time together, but the rising cost of living is causing many to feel stressed about budgeting for everything from childcare, to the food shop, and activities that will keep the children entertained. Our research shows many parents are only choosing activities which are running a deal or discount. Everyone deserves to enjoy time together as a family and saving money on this is where we can help. If you take out a qualifying product via Comparethemarket, you get 12 months access to rewards. This includes 2 for 1 food at selected restaurants, 25% off coffee and pastries at Caffè Nero, and 2 for 1 cinema tickets for two people on Tuesdays or Wednesdays at participating cinemas.”

Gemma Bird, also known as Money Mum, provides further tips on how to save money on family activities and childcare over half term:

“If you’re planning a family day out, one of the best things to do is prepare in advance. You could save money by looking online beforehand and finding out a bit more about the place you’re visiting – whether that’s finding cheaper parking, comparing ticket prices for public transport at different local stations, or having lunch boxes prepped the night before to avoid spending money on eating out. If you want to dine out, see which stores and restaurants offer free or discounted meals for children, so you don’t need to spend more than you need. 

“If you’re able to, it can be useful to team up with fellow parents to help look after each other’s children and save on childcare costs. You could set up house rotations, choosing suitable days to look after each other’s children and splitting the cost of any food or entertainment.  Alternatively, for families eligible to apply, the government offers a tax-free childcare scheme. It’s also worth checking with your local council to see if they run a funded play scheme.”