The political problem of parents priced out of work

The government is slowly waking up to the crisis in affordable childcare.

With the economic climate looking unremittingly bleak, government will have to focus on ways to ease the pain for people on low and middle incomes feeling the famous squeeze. One area that has grabbed ministers' attention is the rising cost of childcare. This is problematic not just because it is a drain on parents' income, but because it can even discourage them from going to work. Eleven per cent of full-time mothers say they stay at home because they can't afford the costs of childcare. Twenty-four per cent of those using childcare say they struggle to meet the cost.

Those statistics -- and plenty more that are equally interesting -- are contained in a new pamphlet by the Social Market Foundation thinktank. It catalogues in some detail the factors that have driven up the cost of childcare as a proportion of household income. Funding and benefits that were introduced at the end of the John Major government (the ability to discount childcare costs from income when applying for housing benefit, for example) and during the Labour government (childcare vouchers, free nursery hours and tax credits) have been frozen or cut, while costs have risen. Meawnhile, as general wages have stagnated, ever more households are relying on two incomes to make ends meet. I recommend the pamphlet -- it isn't too long and is full of useful data -- for a more detailed account of what has happened.

The bottom line is that government will have to step in and rebuild some of the lost subsidy or face more women -- and some men too -- dropping out of the labour market just to look after their children, which is bad for the economy and, in terms of developmental research cited in the report, bad for kids too.

This is an issue that poses a bit of a problem for Iain Duncan Smith, whose Universal Credit (UC) is supposed to make work a more lucrative and attractive option for people currently on benefits. As currently modelled, the UC contains a disincentive for second earners in households with children going back to work (their benefits will be withdrawn faster than would be the case when there is just one earner in a household.) This is either a mistake or, just possibly, the result of a small "c" conservative prejudice about what constitutes a healthy family set-up -- ie. reflecting a view that "second earners", usually mums, should be staying at home with their kids. Official government policy, of course, is to get as many people who can work into work as quickly as possible.

In any case, the government is desperately trying to work out ways to make childcare more affordable, which means finding ways to move money around within a limited pot. Then there is the secondary problem of who in the coalition gets the credit for helping families pay for nursery places. I've written before that this is an area where Nick Clegg and IDS compete for the right to sound compassionate. It is plainly within the DWP remit, but it is Clegg who has flagged up the problem and pushed it at "quad" level -- that is, the committee of four top ministers who coordinate coalition policy.

I understand that an announcement on more childcare support is ready, but that it has been delayed by arguments over who in the coalition should have the privilege of doling out goodies when there is so much doom and gloom dominating the rest of the news agenda.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

Felipe Araujo
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Hull revisited: What happens when a Brexit stronghold becomes City of Culture?

We report from Hull, to find out if you can replace the kind of nostalgia that led to a Leave vote with cultural investment.

At 75 metres long, the offshore wind turbine blade erected across Queen Victoria Square, in the heart of Hull, is a sculpture intended to mark a new chapter in the city’s history. For the next 12 months, Hull, a city of more than a quarter of a million people in the northeast of England, will be the UK’s City of Culture.

The 28-tonne blade hails from the local Siemens plant. The German technology company employs around 1,000 people in the area, making it Hull’s biggest single employer.

Seen up close in this context – laid dormant in the middle of a town square instead of spinning up in the air generating energy – the structure is meant to remind passersby of a giant sea creature. It is also, I’m told, an allusion to Hull’s rich maritime history.


All photos: Felipe Araujo

Nostalgia is a big thing in this part of the country. At one point, Hull was the UK’s third largest port but technology and privatisation drastically changed that. The battle over cod fishing with Iceland in the waters of the North Sea 40 years ago has also dealt a major blow to a region with a long and proud trawling tradition.

People here still talk about a bygone era when the fishing industry provided jobs for everyone and there was enough money to go around.

Fast forward to 2017, and the country’s new capital of culture is the same city that voted 67 per cent in favour of leaving the EU last June. Its new-found prestige, it seems, is not enough to erase years of neglect by a political class “too busy for commoners like us”, as one resident puts it.

“More than a message to Brussels, it [the Brexit vote] was a message to Westminster,” Paul Leeson-Taylor, a filmmaker born and bred in Hull, tells me. “For the first time in a long time people in Hull felt like they had the chance to change something, and they took it.”

But while speaking to people on the high street and hanging out with locals at the Community Boxing Club in Orchard Park, one of the city’s most deprived areas, there is one word that consistently popped up in conversation – more than any specific policy from Westminster or the much-hated rules “dictated” by Brussels. Foreigners.

According to official figures, Hull’s population is 89.1 per cent white British. Still, immigration is big on people’s minds here.

During my two-day stay in the city, I find myself being the only black person in most places I visit – I’m certainly the only black guy at the boxing club. So when someone begins a sentence with “I’m not racist but…”, I know a tirade on immigrants is about to ensue.

“There are just too many of them,” Nick Beach, an estate agent whose Polish clientele is a big part of his business, tells me as he is about to teach a boxing class to local children. Beach was born in Shepherd’s Bush, in West London, but has been living in Hull for the last 20 years.

“When I go down there these days and go into Westfield shopping centre, it is very rare you get an English person serving you now,” he says. “I just find it disappointing that you go into your capital city and you are a minority there.”

These are the much-discussed “left behind”, a white working-class community that has gained particular prominence in a time of Brexit and Donald Trump. Under economic pressure and facing social change, they want to have their say in running a country they claim to no longer recognise.

For Professor Simon Lee, a senior politics lecturer at the University of Hull, immigration is only a superficial layer when it comes to explaining the resentment I witness here. For him, the loss of the empire 70 years ago is still something that as a country Britain hasn’t come to terms with.

“The reason for us to be together as a United Kingdom has gone, so what is the project?”

As destiny would have it, a foreign company will now play a major role on Hull’s economic future, at least in the short term. In the wake of the Brexit vote, there were widespread fears Siemens would pull out of the region and take its factory elsewhere. With the massive blade looming large in the background, Jason Speedy, director of the blade factory in Hull, assures me that isn’t the case.

“The Brexit decision has made no difference. We have made our investment decision, so Siemens, together with the Association of British Ports, has put in £310m. It’s all full steam ahead.”

As Hull becomes the country’s cultural hub for the next few months, the hope is that its residents stop looking back and start looking forward.

For Professor Lee, though, until there is a complete change in the power structures that run the country, the north-south divide will remain – with or without the EU. “The way you kill nostalgia is to have something new,” he said. “The reason why people here are nostalgic is because there is nothing to replace it with.”

Felipe Araujo is a freelance journalist based in London. He writes about race, culture and sports. He covered the Rio Olympics and Paralympics on the ground for the New Statesman. He tweets @felipethejourno.