View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

  1. Politics
19 March 2013

Why today’s childcare changes won’t help the squeezed middle

The government’s plans will not undo the damage from cuts to tax credits and Sure Start.

By Stephen Twigg

We know parents are struggling with the cost of childcare right now. Under David Cameron, childcare costs are eating further and further into household incomes. Research from the Daycare Trust shows costs have risen by 7% in the last year alone, while average hourly earnings have fallen. In one central London nursery, you would have to pay an eye-watering £42,000 a year for one full-time nursery place.

At the same time, David Cameron has been cutting support to families, including cuts to tax credits, child benefit and maternity support. By the next election, families with children will have been hit with cuts of £15bn in financial support over the course of the parliament. By 2015, these cuts will amount to £7bn a year, ten times the value of the £750m in childcare support the government is now proposing.

Worse still, under the government’s childcare plans, not a single family will get a penny before May 2015. But families need real help coping with childcare bills this year, not a vague promise of help in two and a half years’ time.

Many low and middle income earners will lose out under these plans. Families claiming childcare support through tax credits have already seen this support cut by up to £1,560 a year, yet the government’s plans will not undo the damage for many of these families.

But while many families on modest incomes are losing out, if you earn £300,000 you will benefit. The government claims this is fair – but then this is the government that is prioritising a £100,000 tax break to millionaires, so we know what David Cameron’s definition of fairness is.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

Many families will lose out in other ways too. A couple who both pay basic rate tax and have one child can currently get just over £1,800 in support through the childcare voucher scheme. Under the government’s plans, this will fall to £1,200 – another blow to household incomes.

So the childcare squeeze will continue. At the same time, the government is threatening the quality of childcare with their plans to increase the number of toddlers that nursery staff look after and there are now 401 fewer Sure Start Children’s Centres than in 2010.

The government should provide immediate help to families that are struggling, not just more vague promises of help further down the line.

Content from our partners
How to tackle the UK's plastic pollution problem – with Coca-Cola
The hard truth about soft skills
Why we need a national employment service

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU