Parents are struggling to pay fees which are soaring towards levels being charged by private schools, a report by the Daycare Trust and the Family and Parenting Institute found.
A full-time nursery place will set a family back an average of £11,000 a year.
The report says the burden of such fees on working parents is akin to taking on a 'second mortgage'.
The typical cost for a nursery place for a child aged under two years old has risen by 77, to around £106 a week for a part-time place at 25 hours a week.
A full-time place is regarded as one that is 50 hours a week. Costs for children aged over two have increased at an even faster rate of 6.6VIRTUAL-Gallery-178636VIRTUAL-SkimlinksPromo%