The majority of parents on low and middle-incomes "consider childcare to be unaffordable", though those on higher incomes also struggle.
That is according to a major childcare review by the Department of Education.
Parents pay more than £540 a month on average for childcare, though many are paying substantially more than that.
It also found that the number of vacancies for staff working in childcare has rocketed from about 820 in 2021 to more than 2,100 last year.
Low salaries and a lack of suitably qualified staff were the reasons the report gave for the rise in vacancies.
Many childcare providers said workers could be paid more elsewhere for jobs with less responsibility.
"We already are haemorrhaging staff to supermarkets," one provider said.
The UK has some of the world's most expensive childcare.
