I have two children. I no longer pay for childcare, but when I had two in full-time childcare (working a 9-5 job, monday to friday with a 20-minute commute), my childcare bill was £1350 per month. That's with the fre 15 hours all children got back then.
Childcare support from benefits is UP TO 70%. You only get 70% if you're on NMW. Once you're on as little as £18,000 pre tax, that reduces to about 50%. £405 (30%) per month is a LOT of money to find out of a NMW income. £675 even more out of £1280 (monthly post tax take home from £16000 salary). Just adding housing on top of that will wipe out many finances.
The Children's Society report several years ago stated that children from single parent families often did better when the primary parent was able to work reduced hours or stay at home, because that extra time with the one constant, stable feature (i.e. parent with care) in the child's life at the point where they were readjusting to change following relationship breakdown/bereavement helped them to deal with it.Longer term this has positive effects on the child's behaviour and educational attainment.
When you take poverty out of the equation, children from single parent families do just as well as those from two-parent families.
If we are really serious about reducing benefit dependency, we need to be making sure that all schools offer an excellent education regardless of postcode or demographic. We need to be funding extra-curricular activities for kids from backgrounds which are normally priced out of such things. And for those families where the problem is a cycle of chaotic lifestyles/poor parents rather than bad luck and poverty, we need to be supporting them into achieving better standards of parenting or funding better quality of care for children who are removed.
I'd have more truck with a benefit cap if it was being counterbalanced by extra funding for schools and social services. But it's not. It's actually just a way of perpetuating inequality and penalising people for being poor. How is it ever fair to lock people in a room, throw away the key and then criticise them for not leaving it?