Latest report says scrap universal free childcare
According to the latest report from the Institute of Economic Affairs, Government must scrap universal free childcare as this is not helping those families that are in need of help.
With many parents already spending a third of their wages on childcare, the report warns that with the introduction of the 30hrs this may increase childcare fees for other age groups. Funding given to providers will not cover the cost of offering the free hours. Therefore providers will have to look elsewhere to claw back the shortfall, meaning families with younger children will be worse off.
The report issued would like to see;
Universal free care should be scrapped, along with ‘tax-free’ childcare and the Early Years Foundations Stage. Any state intervention should be targeted towards poorer families with low levels of labour market attachment, rather than (as often at present) having perverse redistributional consequences.
At the heart of the Department for Educations agenda is to help all families access high-quality, affordable childcare and with an investment of £6 million, this will help achieve this. The 30hrs free offer for 3 and four-year-olds is set to save working parents up to £5000 per year. At present Two-year-olds from disadvantaged families are being supported by receiving 15hrs free childcare. Childcare providers can also claim pupil premium for those children that are eligible; this is a further £300 per year per child.
It is Government’s job to rethink their involvement in childcare so that all families receive high-quality, affordable children while still ensuring childcare providers remain sustainable.
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