chisigirl, you are perfectly entitled to your view . To me, to give up my childcare vouchers, surestart grant/free nursery places from 3, child benefit would not really impact much. I don't even qualify for tax credits. The next party you vote for should be looking to abolish all this.
Anna, I agree that the government does not purely consider economic arguments in its policies. In any case, there is the constitution/judiciary that protects individual rights that is a constraint against any ultra-right excesses of a government in situ.
However, I suspect that the Chancellor who has to balance the budget also has more than one eye on the economics of his policies. It is a question of how the government slices and dices the taxpayers' funds pie in accordance with what he perceives will win the most votes at the next election or do the greatest good (depending on your view of politicians).
If a policy (eg subsidising childcare) through a relatively small subsidy results in more women like kathy being able to work and contributing almost invariably more, much more, in their taxes which would otherwise be lost if they stayed at home (the penalty for a few years' off work frequently being a lifetime thereafter of poorly paid employment which does not fully utilise the woman's qualifications), I think that fact is a no brainer for subsidising childcare.
The million dollar question is to what extent?