New policy brief sets out vital steps to drive down childcare costs and improve quality
The prohibitive cost of childcare disproportionately hurts women. Women are often financially punished for pursuing a career because the cost of childcare in the UK is the highest in the OECD.
Many women must choose between becoming relatively poorer or putting their career aspirations on hold. But this need not be the case.
Despite the recent Budget announcing an extra £4 billion a year to subsidise childcare, it remains in need of significant reform.
The Adam Smith Institute has compiled the strongest arguments in favour of reforming childcare and complementary policies to bring down costs, provide better quality, and increase parental choice.
A new policy brief from the Adam Smith Institute’s proposes a variety of measures, including:
Ending the £100,000 tax cliff edge.
Easing informal childcare arrangements.
Providing tax credits for work-based creches.
Frontloading Universal Credit payments.
Restructuring the Free Early Education Entitlement Scheme.
Increasing training and qualifications subsidisation.
Sofia Risino, Research Associate at the Adam Smith Institute, said:
“Whilst it is very encouraging to see the Chancellor take steps to adjust our childcare regime, there is still so much to do on the supply side. Simply dumping more cash onto parents solves some issues, but only in the short-run. Changing the cliff-edge, deregulating childminding, going further to encourage work-place creches, and opening accessibility to the Skills Fund are the longer-term solutions that the government should be pursuing.”
Notes to Editors:
For further comments please contact Director of Communications Connor Axiotes on connor@adamsmith.org, or 07584 778207.