Childcare Loans - could this be the answer?

[olgaga]

So, I was on the other thread about childcare ratios, and it suddenly occurred to me...

The Govt's proposals are a complete waste of time. The Early Years sector and most parents and commentators seem to agree that tinkering with ratios, and insisting on higher level qualifications for childcare workers, will not reduce the cost of childcare.

However, everyone agrees that we want good quality childcare and EY workers to be paid a decent wage for the valuable work they do.

We have a system of Student Loans to spread the enormous cost of further education over a longer period.

Why not a Childcare Loan to spread the cost of childcare over a longer period?

So the Govt pays the upfront fees, which parents pay back over a much longer period, with loan repayments based on income.

Could this work?

[AThingInYourLife]

"I think many people would be delighted to spread the cost of childcare over 10, 15, 20 years"

I'm sure they would.

People are delighted to pay for all kinds if things on the never never - holidays, house extensions, handbags.

But that doesn't make it a good idea.

And I would not be delighted for this loan scheme to bring more money into the childcare market without increasing supply or regulating costs.

Because I forgo a lot of consumer spending that other people deem essential so that I can pay for my children to be cared for, so that I can work.

I have no interest in those costs being increased with hot money so that I can have more disposable income now.

If the government wants parents ti have more disposable income while children are small, then they should use tax credits to achieve that aim.

When will these people have time to save for retirement, if they have mortgages, student debt, and massive childcare loans to pay off?

Are you following the issue of unsustainable borrowing for third level education in the US? You really need to.

[SizzleSazz]

A high proportion of people already have no money set aside for retirement and will have to continue to work beyond retirement age to pay for day to day life. I can't see how adding more debt to be paid off in later life helps tbh.
For most people they won't become massively richer as they get older (presuming no house price bubble and inheritances used up for long term care)

[Tanith]

Reinstating the subsidies and tax credits they've removed to date would be a start!

[BeCool]

Sorry but I think this is a dreadful idea. Getting in debt to cover the cost if daily life is not a suitable solution for anyone, for anything.
And for a govt to fund such a scheme would be immoral.

[BeCool]

Don't know why I started with "sorry" - I'm not.

[olgaga]

Well I think I get the message. I still think this is one way of making it easier to manage, for some people - obviously it woudn't be for everyone, just as going to university or taking on a mortgage is not for everyone.

In the absence of any other realistic suggestions as to how childcare might be made more affordable, I still think this could work.

Anyway - thanks to everyone for your views. I think it's an idea we might well hear more about in future.