William Eichler 22 September 2022

Childcare offer ‘complex, patchy and costly’, think tank says

Childcare offer ‘complex, patchy and costly’, think tank says  image
Image: Dusan Petkovic/Shutterstock.com.

A think tank has called for a radical overhaul of the childcare system as research finds that the cost of childcare is forcing new parents to pay to return to work.

A new report by the IPPR think tank has revealed that childcare costs and the universal credit taper alongside income taxes, can create an ‘effective marginal tax rate’ of over 100%.

In a two-parent family with a one-year-old, a low-paid second earner whose partner is on minimum wage could face ‘effective marginal rates’ as high as 130%, according to IPPR’s research. This means the household can become substantially worse off financially from increasing their working hours.

The report also found that the ‘complex and incomplete patchwork’ of childcare entitlements, benefits and allowances for working parents in England leaves many struggling in the face of spiralling childcare bills.

The think tank called for a new ‘childcare guarantee’, which would include 15 hours of free childcare for 48 weeks a year for all pre-school age children.

The guarantee would also include the extension of the core free hours offer to 30 hours per week for all three and four-year olds throughout the year, including school holidays.

Rachel Statham, IPPR associate director and lead author of the report, said: ‘Parents and carers are facing a complex, patchy and costly set of childcare offers. As the cost of living crisis pushes more families into financial stress, rising childcare costs are increasingly unaffordable - and risk pushing parents of young children out of the workforce altogether.

‘We urgently need reform to simplify and expand childcare provision. It’s time for a childcare guarantee to lower barriers for parents getting back into or getting on in work, to reduce costs for families with children, and to ensure every child has access to high quality early years’ education.’

SIGN UP
For your free daily news bulletin
Highways jobs

Chief Executive

Ebbsfleet Development Corporation
up to £165,000
Ebbsfleet is one of the UK’s most ambitious regeneration projects, a 21st-century Garden City Ebbsfleet, Kent
Recuriter: Ebbsfleet Development Corporation

Virtual School Inclusion Support Officer

Essex County Council
£32768.0000 - £38550.0000 per annum
Virtual School Inclusion Support OfficerPermanent, Term Time£32,768 to £38,550 per annum (full time equivalent)Location
Recuriter: Essex County Council

Senior Business Development Officer

Essex County Council
£36341.0000 - £42754.0000 per annum
Senior Business Development Officer - Integrated Passenger Transport UnitFixed Term, Full Time£36,341 to £42,754 per annumLocation
Recuriter: Essex County Council

Adults Social Worker - Neighbourhood Team

Essex County Council
£37185 - £50081 per annum + Flexible Working, Hybrid Working
Interview dates
Recuriter: Essex County Council

Investment Marketing and Web Officer CDC

City Of Doncaster Council
Grade 8, £33,708 - £37,399
The postholder should be experienced in planning social media activity, refreshing web content and analysing their impact. Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner