This year's survey shows considerable cost increases in almost all parts of Britain, and in particular England where costs have risen 10.1%.

Over half of local authorities reported that parents feel there is not enough holiday childcare, and in particular a lack of holiday childcare places for children 12 years old and over, and for disabled children.

Daycare Trust Joint Chief Executive Emma Knights said:

"High quality holiday childcare is essential for working families up and down the country. 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. High quality holiday childcare also provides a stimulating environment for kids throughout the long summer months with children being able to try things they wouldn't otherwise experience.

"That's why it is deeply worrying that parents are reporting a lack of holiday childcare provision and that average prices are rising well above inflation pushing the costs beyond the reach of poorer families. It is important that parents claim any help to which they are entitled"

"The lack of childcare places for children of 12 and over is especially worrying for lone parents, as from autumn this year lone parents with children over the age of 11 will be required to make themselves available for work or risk losing benefits. It is clear that urgent action needs to be taken to ensure that lone parents have access to appropriate holiday childcare for their children if they are expected to find work."

Daycare Trust Recommendations:

Subsidise out of school activities for all 11-14s and for younger children from poorer families, aiming ultimately to make them free.

It is urgent that the provision of holiday childcare is increased, given the growing number of working parents and especially given their increased importance within the government's welfare reform programme. This will require sustained subsidy to ensure all parents are able to access such care.

Increase the proportion of help with childcare costs through tax credits from the current 80 per cent to 100 per cent; vary maximum levels that can be claimed by region to accommodate costs in high cost areas; and consider more fundamental reform.

Tackle the affordability crisis by giving local authorities the means to develop sustainable services in poorer areas and provide free places for those missing out, including places for disabled children, parents needing out of hours care, Further Education students and parents of under-threes who want to train.

Download the Holiday childcare cost survey 2008.

We would be very interested to hear your opinions on our recommendations and also your experiences of trying to find good affordable holiday childcare. Email your response now.

Join Daycare Trust's Facebook group

Daycare Trust has formed a Facebook group Daycare Trust - Parents 4 Childcare so please do join the group. Please encourage your friends and colleagues to sign up to the group too.

Information Line and Paying for childcare

Don't forget you can call Daycare Trust's information line on 020 7840 3350 which is open on Monday, Wednesday and Friday from 10am-5pm.

You can also get information and download our factsheets from our Paying for childcare website.