Parents Turning Down Jobs Because of High Childcare Costs
In Britain, parents spend a higher percentage of their income on childcare than anywhere else in the world. A new study by Save the Children and the Daycare Trust shows that people can’t afford not to work, yet they struggle to pay for childcare.
- 1/3 of parents’ income is spent on childcare in Britain
- 4 out of 10 families have childcare costs that are on par with mortgage/rent payments
Because of the high cost of childcare, many of the poorest families in Britain are going into debt, 1/3 are turning down jobs, and 40% are thinking about leaving work.
“Childcare in the UK is among the most expensive in the world, and families on low incomes simply don’t earn enough to cover the costs and are being priced out of work as a result.”— Sally Copley, Save the Children
Largely because of the high expense of childcare, 1 out of 4 parents in severe poverty have given up work, while 1/3 have turned down a job.
- Almost half of families in severe poverty have cut back on food to pay for childcare
- 58% said that, once childcare costs were factored in, they would be no better off by working
The problem has been aggravated by cuts to the working tax credit. Four out of 10 of those affected have thought about giving up work because they won’t be making enough to cover childcare costs.
Many parents in severe poverty haven’t been able to get further education or training because of the cost of childcare.
“Women in particular are being disproportionately affected by ever-increasing childcare costs which, when combined with rising petrol prices, soaring rail fares and the reduction in the childcare element of the working tax credit mean that for many people work simply does not pay.” — Malcolm Tyndall, director at Elizabeth Finn Care
In the last year, the number of women choosing to take care of their own children rather than taking jobs has risen by 32,000, and most cite childcare cost as a major factor. When public sector jobs start getting cut, even more women will have to leave the workforce.
“While everyone accepts that tough choices need to be made in order to tackle the deficit, it is worrying that the austerity measures seem to be disproportionately affecting women and threaten to undo decades of social progress.” — Malcolm Tyndall
To keep families working, Save the Children and the Daycare Trust want the government to increase the amount that they will spend on childcare support under the new universal credit.
The Department for Work and Pensions has stated that “under universal credit they will invest at least the same amount of money into childcare as in the current system.”
Read more in The Guardian
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