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More funding for free universal pre-school childcare and after-school clubs could boost government revenue and save families with young children between £620 and £6,175 a year, a joint report backed by the Labor Party has said.
The Institute for Public Policy Research (IPPR) and the charity Save the Children have called for a universal childcare guarantee for all families until the end of primary school so that more women can return to work and reduce the attainment gap between rich and poor children. In his early years.
Parents have been pushed out of work because they can’t pay for the rising cost of childcare because many schools don’t have the funds or staff to hold breakfast or after-school clubs.
IPPR has previously argued that rising childcare costs as parents increase their hours tax workers. But ensuring families can access affordable childcare could cut around £2.8bn from government social security spending as more families could go to work or extend their hours.
Rebecca, 37, from Norfolk, lost her job because she couldn’t afford to work full-time and pay for childcare. She cannot claim universal credit to cover her babysitter costs because of the lack of Ofsted-registered babysitters in her area. “I work four jobs to fit around my 10-year-old daughter. It’s really shocking. I tried to work full time for five months but the summer holidays came and I couldn’t come full time. Full-time wages were less than the cost of full-time childcare.”
“If the breakfast and after-school clubs were properly funded and reliable, I could get a real job working a nine-to-five every day and make real money. That would be amazing. Yes, it can be expensive, but it costs a lot of money to keep people out of work and it costs them a lot to get people sick from overwork,” she added.
The report sets out measures for the government to adopt that will ultimately boost economic growth, starting with increasing funding for free hours of childcare and extending the offer to 30 hours for all three- and four-year-olds. Other steps include:
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Extending 15 free hours to all two-year-olds, with eligibility starting at the end of paid parental leave.
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Increase in funding hours for children aged two and under.
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Extending wraparound care to more schools from 8am to 6pm and offering a range of after school activities through term time.
The Labor Party has previously adopted policies from think tanks. Shadow Education Secretary Bridget Phillipson endorsed the report and said: “This detailed and thorough report is further proof that the time has come for a new, modern childcare system – one that will improve the lives of every family.
“Labour will deliver a new system to give children the best start in life and parental choice, enabling them to return to work or extend their hours, and give our economy the growth we need.”
Becca Lyon, head of child poverty at Save the Children, said: “Parents we speak to, regardless of their income, are crying out for change in the childcare system.
“If made a reality, a universal childcare guarantee would be life-changing for families – creating an easy-to-use childcare payment system for all, dramatically reducing childcare costs, ensuring the nurseries their children love are properly funded, and free Providing snacks. And after-school clubs when the kids get older.”
A government spokesman said: “We know that many households and childcare providers are facing pressures from the recession and high inflation. Improving the cost, choice and availability of high-quality childcare for working parents is critical to this government.
“We have spent more than £20bn over the past five years to support families with childcare costs and the number of places available in England has remained stable since 2015, with thousands of parents benefiting from this support. We are investing millions in better training for staff working with pre-school children and have put in place plans to help providers in England run their businesses more flexibly.
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