A new report by the Institute for Policy Research (IPR) at the University of Bath, which highlights how insufficient free hours, added providers fees and a lack of after-school and limited holiday club options is failing families, calls for ‘bold reforms’ to end ‘crippling’ childcare costs for UK families on low incomes.
Among the report’s recommendations is allowing working parents of under-fives on Universal Credit to reclaim 100 per cent of their childcare costs, rather than the current 85 per cent. It says this would enable parents to increase their working hours.
The report, which is based on interviews with low-income parents on Universal Credit, is funded by abrdn Financial Fairness Trust, also calls for:
- Free childcare support to be expanded to include clubs not Ofsted-registered, such as sports or drama clubs, providing more flexible, affordable options for low-income working parents.
- The return of Sure Start to help parents balance, work, care and wellbeing.
Dr Marsha Wood, a research associate at the IPR, said, ‘Low-income families are juggling so much—work, care, and often childcare costs. Childcare should ease their burden, not add to it. These changes could transform life for parents while giving children a better start.’
Dr Rita Griffiths, a research fellow at the IPR, added, ‘Current childcare policies are forcing families to make impossible choices between work and care. These reforms are essential to prevent families from being trapped by high childcare costs and bureaucracy while ensuring every child has access to quality early years education. An increase in parental employment is a 'win win' for all parties concerned – parents, children and the public purse.’
