Most parents with young children would delay having another due to nursery costs that are already forcing some to cut down on essentials, according to new research released amid growing calls for sweeping reforms to childcare.
With the chancellor, Jeremy Hunt, looking at measures that could reduce childcare costs, which are some of the most expensive in the world, prominent providers are to hand a joint letter to Downing Street demanding action on increasing state help, improving care standards and creating a simpler system of assistance for new parents.
A survey of 1,000 parents with children under four commissioned by the group found that 63% would delay having or not have another child due to high childcare costs. Almost half said their childcare provider had increased their fees in the past six months, while 32% also said they were cutting down on essentials such as groceries to afford childcare costs.
Of the parents surveyed, 70% said they would work more if childcare were available for free. Treasury insiders accept that childcare costs are one factor keeping some people out of the labour market. However, the option of extending 30 hours of free childcare to one- and two-year-olds in England at the spring budget has been rejected on cost grounds. The plan would cost about £6bn, roughly equivalent to a 1p increase in the income tax rate.
Officials are examining cheaper options. One idea already making its way through parliament would see workers given the legal right to ask for flexible working from their first day on a job. Currently, employees only qualify for that right after six months. Officials believe extending that right to the moment someone starts a job could encourage new parents back into work at an earlier
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