The report, Families and children 2001: Work and childcare, by the Policy Studies Institute and published by the DfWP at the end of last month, said that childcare arrangements differed according to a family's socio-economic status, with families on higher incomes much more likely than those on low incomes to use formal childcare for their children, whether lone parents or couples.
It found that 57 per cent of pre-school children and 12 per cent of school-age children whose parents worked in managerial or professional-type jobs were in formal provision, compared with 22 per cent and 3 per cent respectively of those children whose parents had manual jobs.
The report said, 'This finding makes intuitive sense as families with higher incomes are in a better position to manage the added costs of childcare associated with formal childcare arrangements. However, it also presents a challenge to policies that aim to increase eligible childcare placements for lower-income working families with the added incentive of a tax credit.
'It appears that those forms of childcare which qualify for support from the Government are disproportionately being taken up by families who do not necessarily qualify for the childcare tax credit.'
Stephen Burke, director of the Daycare Trust, said, 'This report confirms the fact that we have a childcare lottery in this country, where access depends on family income. It also confirms the findings of the recent DfWP select committee report that has called for reform of the childcare tax credit.'
Mr Burke also called for reform of the childcare tax credit by raising the maximum percentage of childcare costs to be paid for, which currently stands at 70 per cent for the poorest families.
Chancellor of the exchequer Gordon Brown said last month that the Government is to scrutinise childcare as part of its next spending review.
