Opinion

To the point - Tax cuts miss the mark

The question Treasury civil servants ask most often about spending more on childcare is whether or not it will result in more people working.

We don't have a clear answer to this in the UK, but a largely unnoticed survey of parents published last month by the Department of Work and Pensions suggests that additional investment in the right parents could pay.

Not surprisingly, the survey shows that use of formal childcare increases with household income. Lower-income families are more likely to rely on informal care largely because it's cheap or free. Nearly half of parents surveyed reported difficulties meeting the costs of childcare, with lowand middle-income families struggling the most. Nearly a fifth of parents in families with incomes between £13,000 and £35,000 said that meeting the costs of childcare was very difficult compared to just over ten per cent among higher-income families.

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