Needy kids 'left behind' as poor parents earn £4 an hour after childcare costs
Disadvantaged kids will lose out from the Government’s childcare overhaul as the plans will disproportionately benefit higher income families, charities have warned.
Chancellor Jeremy Hunt unveiled an expansion of childcare provision in England in the Budget in March, which will cover kids up to the age of five by September 2025.
Research by Coram and the Joseph Rowntree Foundation found that a parent earning minimum wage takes home around £4 per hour worked after childcare costs and once the Universal Credit taper rate has been applied - effectively eroding over half of their earnings.
A low-earning single parent will only be £60 per month better off if they increase their working hours from four to five days.
Researchers warned the Government plans won't improve the quality of childcare provision - missing a critical opportunity to narrow the attainment gap between poorer children and their wealthier peers.
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Only 48.1% of young children who qualified for free school meals were assessed as having a ‘good level of development’ in England last year, compared to 68.8% of more affluent kids.
Children from disadvantaged backgrounds are missing out on quality provision (Getty Images/iStockphoto)Megan Jarvie, Head of Coram Family and Childcare, said: “Disadvantaged children are falling behind before they even start school.
"A well designed and functioning childcare system can be a key tool in tackling this disadvantage.
"But instead, families are stuck in poverty and children are missing out on early education that could better prepare them for school."
Purnima Tanuku, Chief Executive of National Day Nurseries Association said: “Evidence clearly shows that investing in early education and care for our youngest children is the best way to boost their life chances. We also know that children from disadvantaged backgrounds have the most to gain from accessing high-quality early learning opportunities.
“While the extra investment is clearly welcome for working parents, there are rightly questions about the levels of support for those children from disadvantaged backgrounds. We don’t want to see the attainment gap grow wider."
A Department for Education spokesperson said: “We are introducing the largest ever expansion of free childcare in England, worth up to an average of £6,500 per child per year for a working family.
“We recognise the cost pressures that childcare can create for parents, and low-income families already qualify for 15 hours free childcare for two-year-olds, a year before all children become eligible for 15 hours at ages 3 and 4.
"We are also increasing the childcare costs that parents on universal credit can claim back by around 50%, up to £950 a month for a single child and £1,629 for two children.”
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