London Assembly considers how to make childcare in the capital more affordable

At the meeting of the London Assembly’s health and public services committee this week, organisations including the Resolution Foundation, London Early Years Foundation and Daycare Trust discussed barriers to accessing childcare in the capital and how these can be tackled to make things easier for parents.

The main issues highlighted were a lack of childcare and flexible childcare outside of typical working hours, and above average nursery fees, which are proving to be a problem for families in London, who often cannot rely on families to provide informal care.

Vidhya Alakeson, research and strategy director at think tank Resolution Foundation, told Assembly members that one solution to increase the provision of childcare in the capital could be to use tax incremental financing to fund new childcare provision.

She said the innovative financing model, which is used to finance large infrastructures such as railways, and works by borrowing money from the investment market based on future business rates, would mean local authorities could re-invest the money generated back into the sector as well as pay back the loan.

Ms Alakeson also suggested making childcare more affordable for families by introducing a loan scheme, already available in some boroughs, that would allow parents to cover fees paid in advance to secure a nursery or childminder place.

To meet the needs of parents who work shifts, Ms Alakeson brought to the attention of members a project of the Resolution Foundation’s, currently underway, in which employers work with providers in their area to determine demand for care. The biggest problem she said for providers is that they don’t know what parents’ needs are and that parents who work shifts presume that there is no suitable childcare.

Anand Shukla, chief executive of the Daycare Trust, who also submitted evidence to the committee, highlighted one scheme which helps match parents with registered childminders and nursery staff willing to look after children between 6am and 11pm, usually in the child’s own home, suggesting it could be extended across the capital.

The committee also heard from Family Information Service officers from the London borough of Hounslow and Enfield, who act as the first point of contact for families and provide advice and information.

Closing the session, Victoria Borwick, chair of the health and public services committee, said, ‘While there are no easy answers to making childcare more affordable and accessible, local Family Information Services are an excellent source of advice for parents, and there are new ideas on the table to help families.

‘We need to look at all options to see if the situation can be improved because, for parents, finding quality childcare at the right cost is key to being able to return to work if they wish to do so.’

Wednesday’s meeting formed part of a wider investigation into childcare being carried out by the committee, who are also considering the views of childcare experts and London families.

The investigation will culminate in a report due to be published early next year.