Some interesting points there, sixisthemagicnumber.
I believe the reasons for funding some 2 year olds (based on deprivation data such as unemployment) is because it's seem as early years education rather than childcare per se.
However I see your point: given that there isn't an unlimited purse, it would make sense to direct more funding into childcare for parents who are working.
I think it's very difficult to make a direct comparison with previous generations. It's absolutely true that cost of housing has risen massively and higher deposits are required.
However, once you secure a mortgage, the mortgage itself has actually been really cheap for at
Least 6/7 years.... anyone who had young children during the massive interest rates of the early 90a will remember the huge hikes which saw mortgage payments just go up and
Up and up. We had a manageable mortgage when our dd started in childcare but within a few months it mire than doubled in monthly payments- who remembers when the rate actually went up several times over the course of a day?!
Also another big factor was shorter ML and no childcare subsidies so if you returned to work when the baby was 12 weeks (end of paid ML) you would pay full childcare until they started school. If, like us, you had a September born baby, that was almost 5 years of paying the full cost. 15 free hours would have felt like we'd won the lottery I think! If you take a year ML nowadays, you're only paying full care for a couple of years before free hours kick in.
The big problem has been tax credits - well intentioned but the result has been to mask the fact that NMW is too low, and in some cases people do use them in a way they were never intended.
Tax credits were supposed to help people who weren't working at all to see the value of doing even a part time job. What's happened is that some people see the 16 hours as a target, not a minimum threshold- they choose to work very part time and get topped up.
Of course it's all going tits up now with welfare reforms, and of course while being topped up by tax credits puts some immediate cash in your bank, its doing nothing to secure your long term future, pension etc
Bottom line is: the govt needs to build way more affordable housing and enforce the 'LIving wage', and ideally raise it. I would also like to see more financial help with childcare, plus a higher payment for dads who take the transferable parental leave which I believe is massively advantageous to the child and to society as a whole because it broadens our entire perspective of working/ caring and stops this being a female issue. These things I believe would have a greater long term outcome than trapping people into working very few hours because they have no incentive to work more.