Guest post: "Universal free childcare benefits not only children and parents, but the economy too"

[JuliaMumsnet]

Hana Abid, Research & Policy Officer at UK Women’s Budget Group, lays out how the pandemic has shone a light on the failures of our childcare system - with a devastating impact on working-class women especially - and why a policy of universal free childcare would go a long way to solving these issues.

"The UK’s childcare system is not fit for purpose and is failing both parents and children. Even before the pandemic, childcare in this country was an expensive, underfunded and overly complicated mess of private providers, insufficient government support and oversubscribed waiting lists. The global health crisis worsened pre-existing issues of low pay, insufficient training, high staff turnover and underfunding. All these issues contribute to childcare not being accessible to many families, especially single-income households and working-class families who are less likely to have access to the flexible working arrangements that make it easier to juggle caring responsibilities with paid work. Today, the pandemic and the national lockdowns have pushed childcare providers to the brink and are at risk of making early years education even more inaccessible and unaffordable than before.

High-quality accessible childcare is good for children and parents. Early years education is essential for developing children’s social, emotional and cognitive skills. It also reduces social inequalities by helping disadvantaged children access high-quality support earlier on in their education. For parents, childcare allows them to take up or remain in paid employment, or undertake training or other activities, such as care for other relatives, or volunteering in their community, knowing their child is safe and looked after. Accessible childcare can also go a long way to removing the barriers to employment for women, who are disproportionately responsible for caring responsibilities within a family.

Childcare in the UK is one of the most expensive in the world. It is the single biggest barrier to women’s career progression and couples often weigh the cost of it against the mother’s salary when deciding caring responsibilities. We found that part-time childcare for younger children absorbs 63% of women’s average earnings. Women are more likely to be working part-time due to having to balance their caring responsibilities with paid work. The same type of childcare for three- and four-year-olds absorbs 24% of women’s median earnings, after accounting for the free childcare entitlements.

The significant difference in childcare costs for younger and older preschool-age children shows the importance of the free entitlements that only kick in for most children after age three. The maths of this means that many single mothers will not be able to return to work before their child turns three at the earliest, or reaches school-age, by which point she may have spent up to five years outside of the labour market and will have lost on earnings and career progression opportunities.

It is easy to see then how the unaffordability of childcare has a direct negative impact on women’s career progression and earnings, severely limiting the choices they can make within and around the labour market. Many women, particularly women in low-paid jobs and single parents, are caught between a rock and a hard place: they can’t work because they can’t afford childcare, and so they struggle to provide for their families.

As many have predicted at the onset of the pandemic, the last 18 months are exacerbating some of the issues the childcare sector was already facing. Many childcare places have been lost because of the pandemic. Recently published data from Ofsted shows that childcare providers have been closing at a concerning rate, with almost four times more providers closing between September 2020 and March 2021 than between March and August 2020. Now that restrictions are lifted, the demand for childcare is expected to increase again, and fewer places combined with the affordability crisis is likely to make it harder for many mothers to remain in their jobs.

This is likely to hit working-class mothers a lot harder than others. During the pandemic when many childcare providers were closed, working-class women did the least childcare and home-schooling hours among employed women, and they were also the women least likely to reduce their hours or change their work schedules because of the time they were spending on childcare or home-schooling. This is because flexible working arrangements which would allow them to better manage multiple demands are less accessible in the jobs that working-class women do.

In a recent survey of more than 20,000 parents conducted by a coalition of women’s organisations including Women’s Budget Group, Pregnant Then Screwed, and Mumsnet, 83% of working-class parents (97% of respondents were mothers) said they had "had difficulty finding appropriate child care that met their needs" compared to 73% of all parents. Working-class parents are also more likely to be forced into debt. Working-class women who are not afforded flexibility in their paid work, need flexible and accessible childcare provision both in terms of availability as well as affordability.

At the UK Women’s Budget Group, we advocate for the introduction of free, universal childcare provision year-round and on a full-time basis, from the age of six months onwards, including for older children, through comprehensive extended school activities before and after school, and throughout school holidays, regardless of whether parents are in paid work or not. This is in step with public opinion: 83% of parents in the same survey support universal free childcare funded by the taxpayer.

Universal free childcare of good quality has benefits not only for children, who would benefit from crucial early years care and education, and parents, who would be able to better combine work and family life, but it also has important economic returns: more jobs created in this sector and across the economy, increased tax revenue and savings in social security spending, that means the initial cost of investing in a free universal system are nearly all recouped by the government.

We believe this is the best way to create a caring economy which brings us closer to living in a gender-equal world. Unfortunately, we are a long way from realising the full benefits of this vision in the UK. The current system is certainly not fit for purpose, and free entitlement hours that cover the cost of childcare provision is the bare minimum of state support that should be provided by the Government."

Hana or someone else from Women's Budget Group will be coming back onto the thread early next week to answer your questions.

[DrCoconut]

Availability of childcare would be a good first step. I can't get a childminder to pick up my children from school. So many have gone under in the last year and now spaces are real hard to find. There is

[DrCoconut]

Continued, sorry. There is no after school club either. I'm a lone parent and now have to restrict my hours round childcare availability. Pre pandemic it was not a problem.

[SMaCM]

As long as the government don't say it's free and then not pay the childcare providers adequately for it - like the 15/30 hours funded childcare.

[Viviennemary]

There is no such thing as free childcare unless a relative or friend agrees to do it free. Its delusional.

[ICanBelieveIt]

I had my children very late. By the time my second child reached primary school, I was out of the job market for 5 years and now, aged 46, I have absolutely no prospects of find myself a job. I am absolutely and utterly stuck. Relying on DH and hating every minute of it.
I am a prime example of childcare costs destroying woman's career

[Hopefullysweatmightbewee]

Why is the childcare always a problem for the Mother? Why is it proportionate to a percentage of the mothers pay?

I think you will find that a lot of couples earn similar amounts until they have children and then the Mum goes PT or becomes a SAHP because they want to or their partner wants them to. Then they end up unable to get back into the job market and of course, by then, their partner has made increased his earnings to the point where there is no way back to equality.

The only way any of this will change is for our ingrained ideas about who goes PT or becomes a SAHP when kids are young.

And yes, childcare is too expensive.

[Hopefullysweatmightbewee]

Sorry, my previous post was full of typos. I think we need to

1. Normalise men taking an equal role in childcare/child raising/housework
   

to enable

1. Mothers to remain in some form of paid employment while kids are little.
   

To avoid the very common situation of @ICanBelieveIt

I’m at the age now where all my friends are in that situation and it’s miserable for them.

[Hardbackwriter]

@SMaCM

As long as the government don't say it's free and then not pay the childcare providers adequately for it - like the 15/30 hours funded childcare.

This. I have absolutely no interest in any policy/proposal to increase childcare provision that doesn't explicitly identify this is as an issue, and I'm yet to see one that does.

[gogohm]

There's no such thing as free. What you mean is taxpayers (many on very low incomes) paying more tax so middle income families are better off. There's already hours for every 3 year old and means tested support through universal credit. We lived in a 2 bed flat and had no car so I could stay home and care for my kids before school age, I simply don't see why I should fund other people's childcare

[Terribleluck]

@gogo you might think you're funding somebody else's childcare, but then that someone is funding the NHS and other services...

[Elieza]

Until pre-school places are in local authority facilities and free, exactly the same as primary and secondary schools, and all have breakfast and dinner clubs, rather than private organisations and sometimes no outwith hours care, there will always be inequalities and problems.

[vickyc90]

I agree that free childcare should be available for the 1st child but after that it should be paid. What we struggle with is the availability of after school care since the pandemic. Why not mandate primary schools have to offer after school care until 6pm to enable parents to get home from work.

[MiddlesexGirl]

I agree childcare should be shared equally between parents. I disagree with funding full time places from 6 months. I disagree that all pre-schoolers benefit from full time places. And I can't see the logic in freeing a woman from caring for their child(ren) only to take on caring responsibilities for another family member ..... because you can be 99.9% certain that a man wouldn't do this.

[Apple40]

I am one of the many childminders who shut down (April) this year. It was mostly due to the rate local authority paid for the free hours £3.80 an hour when I charged £4.50 privately I could not afford to keep open , parents refuse to pay any extra as they want the free care they have been told about.the pandemic meant no new enquires for spaces and those that did want spaces only wanted to pay £2 an hour as they were key workers! Even before the pandemic the childcare sector staff were treated badly parents childcare bills were never a priority and always forgot to pay until advised no payment no care. Free childcare for all will kill the childcare that is already struggling as the government does not have the funds to pay a fair rate now the rates if they gave everyone free care the rate to providers will be even less.

[disco123]

There is a problem. Could we think more about the assumptions underlying this solution? Is it really best for children to spend long hours in full time group care from 6 months of age?

Are there other measures that could be considered?

End zero hours contracts?

Raising wages?

A legal right to WFH and flexible hours?

Equal paid paternity leave for fathers so that children can be cared for by a parent during the first 2 years of life?

Childcare payments to stay at home parents?

Universal basic income?

[Danikm151]

As much as people say you get support from universal credit towards childcare before aged 3. It doesn’t quite add up.
Max amount is £646.35, a full time place can be upwards £900. I’m lucky to get help from family 1 day a week but I pay £760 a month. £143.65 extra has to be found.

I work full time. Reduced hours were refused due to needs of the business. It’s keep working and fork out extra (sometimes on a credit card so more debt) until the term after my son’s 3rd birthday or fully rely on benefits and get further into debt.
Catch 22

[julieca]

I too disagree with funding full-time places for babies from six months old. We should be making it easier for a parent to stay at home with such young children, so only those who really want to work and use childcare, do so.

[Lunde]

My children grew up in the Swedish system. Childcare funding starts at 12 months. The maximum you can pay for full time nursery is 3% of income for child 1 up to the max of 1500 per month (£125) - there are discounts for subsequent children 2% ( max £85) for child 2 and 1% (£43) for child 3 etc

Wraparound care is also subsidised comprising breafast club and afterschool club 2% or max £85 for 1st child and 1% £43 for others. Like nursery it include various activities forest trips, swimming, skating, games etc and breakfast and a light tea.

[ZoBo123]

@julieca

I too disagree with funding full-time places for babies from six months old. We should be making it easier for a parent to stay at home with such young children, so only those who really want to work and use childcare, do so.

But surely if we encourage parents (let's be honest, mums) to stay at home we are exacerbating the problems we are trying to solve, gender pay gap, unequal opportunities for women etc. We don't have to force parents to use childcare (like we don't for the funded hours at 3) but the option of funded childcare should be there. I also think that it needs to be different to the current system "30" hours, which is actually 22 hours if you use it over the year. It should be fully funded places at full cost to nurseries that all parents can access for say 20 hours a week. The rest is then topped up at a discounted rate to parents.

[julieca]

@ZoBo123 if free childcare is there, it will over time become normal for people to use it even if they do not work. This is what has happened in Sweden. I don't think encouraging six-month-old babies into full-time group care is a good move. Yes, I am sure the careers of middle-class mums would do better as a result.

[Getyourarseofffthequattro]

@gogohm

There's no such thing as free. What you mean is taxpayers (many on very low incomes) paying more tax so middle income families are better off. There's already hours for every 3 year old and means tested support through universal credit. We lived in a 2 bed flat and had no car so I could stay home and care for my kids before school age, I simply don't see why I should fund other people's childcare

Same reason other people fund your medical treatment or care costs.

We've only had one child because of the cost of childcare. Am I angry about that? Yes. Do I want better for the next generation? Of course I do.

[Getyourarseofffthequattro]

@Lunde

My children grew up in the Swedish system. Childcare funding starts at 12 months. The maximum you can pay for full time nursery is 3% of income for child 1 up to the max of 1500 per month (£125) - there are discounts for subsequent children 2% ( max £85) for child 2 and 1% (£43) for child 3 etc

Wraparound care is also subsidised comprising breafast club and afterschool club 2% or max £85 for 1st child and 1% £43 for others. Like nursery it include various activities forest trips, swimming, skating, games etc and breakfast and a light tea.

That sounds like an actual dream.

[julieca]

@Getyourarseofffthequattro everyone needs medical care at some point, most need some care. The point being made is that economically it is largely middle-class families who have the most benefit from free childcare. If you are on a low wage, a break for maternity leave really does not create a wage gap.

[julieca]

I would support free childcare for a family with a household income under £30k. Although I would also want it to include support to stay at home with very young children.
I am not prepared to pay higher taxes so well-off families can have an even higher income.

[Getyourarseofffthequattro]

[quote julieca]@Getyourarseofffthequattro everyone needs medical care at some point, most need some care. The point being made is that economically it is largely middle-class families who have the most benefit from free childcare. If you are on a low wage, a break for maternity leave really does not create a wage gap.[/quote]
As someone who was on a very low wage when I had a baby, that is utter utter bullshit. A drop is a drop no matter how you dress it up. The reason I only had one child is the cost of childcare. I actually think that comment is pretty disgusting.

This would MASSIVELY benefit mother's on lower incomes. It would allow them to have their children, to go back to work and to progress where before they either, like me, can only have one child, or they gave to quit work.