The real childcare obstacle
The Guardian is usually pretty good at the detail of welfare policy, so it’s a bit disappointing to see this article on childcare, ‘Childcare costs stopping mothers going to work, says study’.
The article focuses solely on the upfront costs of childcare as an obstacle to employment. As such, it appears to be based on a single press release from insurance firm Aviva, and the author/editor don’t even seem to have bothered to read the report the press release is advertising.
In that report, the Chief Executive of the Daycare Trust is quoted:
Parents in the UK contribute more towards childcare costs than any other country in Europe, and costs have risen every year for the last ten years.
At Daycare Trust we are particularly concerned about the recent cuts to the childcare element of working tax credits. Too many parents are already making the tough decision to give up their jobs because the extortionate costs of childcare do not make it worth their while. We fear that these tax credits cuts will mean that many more parents could also be priced out of the job market.
That is, while costs may be an issue (though I actually think this a simplistic argument which is bad for quality childcare in the long run), an expert in the field suggests that the government’s cutting of tax credits (from April 2011) is the bigger problem. (To be scrupulously fair, the press release focuses on data from the last year, before the main impact of the WTC changes, but it still seems odd for the Guardian to have left the new developments out, especially when the report highlights them.)
As a social enterprise childcare provider, I have plenty of evidence that Daycare Trust is correct in its assessment. Based on my experience I commented on the Guardian piece as follows (slightly tidied here):
The main problem for many/most families is NOT the cost of childcare, but the changes in April 2011 to Working Tax Credit (both overall ‘withdrawal rate’ and reduction in proportion of childcare costs covered by childcare element of WTC from 80% to 70%). See here for a quick summary of changes and the TUC site etc. for examples of impacts.
As a social enterprise childcare provider I’m seeing a big change in families’ plans, as they come to terms with these cuts (many people have just received their tax credit settlement and have made decisions in the last month or so).
This has led to significant loss of business for us. The tax credit changes are much more important to people’s decisions than our inflation-related fee increases, which we publicised some time ago.
I’m surprised this article misses out this important stuff, to be honest, as it means quite a false picture is presented. I guess it’s because the article is based on a press release only.
The Coalition counterproductive austerity measures, not childcare providers, are to blame for the lack of choice many women now face. It’s a pity the Guardian has not said that.
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