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Research by the IPPR calculates that up to 500,000 more mothers could be working if childcare was more flexible and affordable.
The report argues that universal childcare should be provided through community institutions, such as children’s centres, rather than cash benefits or tax-free vouchers.
Its analysis shows that maternal employment rates for mothers, with their youngest child aged between three and five, are lower than the OECD average (58 per cent, compared to 64 per cent).
If this was to rise by 5 percentage points, an extra 150,000 more mothers could be in work.
Increasing the number of women in work by this proportion would generate £750m, split between savings of £450m in lower tax credit and benefit spend and £300m of extra revenue.
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