Couples that work full time and are paid the National Living Wage of £7.20 are unable to enjoy a basic life due to high childcare costs
Research published by the Joseph Rowntree Foundation states that many low earning, working families are falling below the poverty line because of high childcare costs. The Minimum Income Standard research, carried out by the Centre for Research in Social Policy at Loughborough University, shows that many working families are now struggling financially.
The organisation are battling with the government for radical changes to be made around childcare costs, in order to better support working families. The foundation are due to launch a ‘poverty reducing’ strategy in September this year, recommending a number of reforms. The recommendations include:
- Free childcare for those families on the lowest wage, with costs capped at 10 per cent of disposable income for families with low to middle incomes.
- Offering Nursery Education Funding across 48 weeks of the year rather than the current 38 weeks, also across a full working day.
The government need to be supporting parents in getting back to work and balancing their finances to ensure children are accessing a good standard of living. Child poverty continues to increase in the UK. Two thirds of children growing up in poverty now live in a household where at least one parent works, according to a new study by the Institute for Fiscal Studies (IFS).
Employment levels are now at a record high meaning fewer children are growing up in workless households; however low wages are leaving many families worse off. Families that work full time and require childcare are stuck in a catch 22 situation, needing to pay out high childcare costs in order to work and try to provide for their families.