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High cost of childcare cancels out benefits of working longer hours

Funding Policy & Politics
London parents on the minimum wage risk little gain from working extra hours due to the high-cost of childcare.

According to a new report by Loughborough University on behalf of the Child Poverty Action Group (CPAG) and the charity Trust for London, the cost of childcare in London means parents on the minimum wage are no better off, or in some cases even worse off, working more hours.

According to Children in London - extra costs, a parent with one child in London earning the minimum wage would be around £4 a week worse off if they increased their working hours from 32 to 33 hours, because of high childcare costs.

In comparison, a parent in the same situation but living outside London, would gain 62p currently, or £1.16 under Universal Credit, from April 2016.

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