16 June 2006
Almost 5 million families are missing out on state-assisted childcare because of current tax credit arrangements, according to the Institute for Public Policy Research.
Latest findings from the think-tank show that four categories of families are missing out on financial support for childcare.
The June 12 report, Equal access? Affordable and appropriate childcare for every child, recommends switching the entitlement away from the Working Tax Credit to the Child Tax Credit to include a further 4.7 million families. If take-up rates remain the same, with about a quarter of eligible families making a claim, the IPPR estimates the scheme could require another £2bn of investment over time.
It identifies four priority groups who need extra help: lone-parent families; families facing higher costs, such as disabled children; children living in workless households; and children living in larger families.
The average cost of a full-time nursery place for a child under two is now £142 a week, equivalent to £7,300 a year.
IPPR director Nick Pearce said the government had made 'great strides forwards' on childcare, but needed to keep up the momentum in the forthcoming Spending Review and beyond.
'There is a real benefit from the social mix that childcare exposes children to at such an early age,' he said.
'Good-quality childcare helps close the educational and attainment gap between rich and poor and helps get parents back into work. [Parents] being able to go on training courses, go to interviews or undertake job search activity without the kids around would be good for our economy.'
PFjun2006
