Nick Clegg sits with children at the Mace Montessori nursery on September 2, 2013 in London. Photograph: Getty Images.
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To solve the living standards crisis, all parties need to go much further on childcare

Too many many parents are trapped at home or are only able to work a few hours a week because of the rising cost of childcare.

With the price of childcare increasing at double the rate of overall inflation, there now seems to be agreement across the three main political parties that more needs to be done to make childcare affordable. This is likely to become a key battleground at the next election. Family living standards and childcare affordability is a doorstep issue in battleground seats across the country.

Many parents want to work but can’t afford to. Among two-parent families with children, the risk of child poverty is four times higher in families where only one parent works than in families where both do. Our original modelling, published today, suggests that the incomes of families with children aged less than five stand to gain an average of 20 per cent in disposable income upon a mother’s transition into work.

Families with children who are already in work are spending a larger and larger proportion of their income covering childcare costs. The Resolution Foundation has estimated that a median-income couple working full-time with two children aged 2 and 4 now pay out a huge amount for care, around a quarter of their disposable income.

Many people who are already working would like to work more hours but can’t afford too. Surveys of mothers frequently reveal a large gap between the hours mothers would like to work and the hours they currently are. A recent DWP survey found that more than 60 per cent of couples not working full-time would be willing to increase their hours of work if the extra costs were covered by the government. Again, if their needs can be met it is families themselves who stand to gain - our modelling shows that a mother transitioning from working part-time to full-time would see their disposable family income rise by around 20 per cent.

Of course, it is not just incomes that are at stake. Childcare is also good for child development and having more mothers in work would help to reduce gender inequality in earnings. But in an era of squeezed wages and cuts to working-age benefits, work can provide a valuable route out of poverty and lift living standards for families with children.

So what are the political parties planning to do? The coalition announced extra funding in last year’s Budget to increase the value of childcare cash subsidies to families, through a new offer of tax-free childcare vouchers and within Universal Credit. The Labour Party, on the other hand, has said that it would also extend the weekly entitlement to free childcare at ages three and four from 15 to 25 hours for working families.

But if we are to support more out of work parents into jobs, we will need to go further. In most other countries with high rates of employment among mothers of under-fives, publicly subsidised childcare is offered for more hours than in the UK. Prices are often capped so that parents only have to spend around 10 per cent of disposable incomes on care. We should be exploring both options here in the UK. Parents also need high quality childcare that is sufficiently flexible enough to fit around their work schedule. It‘s vital that we address the lack of provision at evenings and weekends.

Not all parents of young children want or are able to work. Public policy that supports parental employment should not be forcing people into the labour market. But many parents are trapped at home or are only able to work a few hours a week because of the rising cost of childcare. Helping this group into jobs and to progress has enormous potential for tackling the cost of living crisis, and should be a key focus of childcare and early years policy.

Spencer Thompson is Economic Analyst at IPPR

Spencer Thompson is economic analyst at IPPR

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland