Benefits costed in daycare for all

In a report, Universal childcare provision in the UK - Towards a cost-benefit analysis, economists at PriceWaterhouseCoopers, the world's largest professional services organisation, said such universal provision would require the creation of about 1.5 million new full-time places in day nurseries or with childminders or other care providers. The report said the immediate economic benefit would be to create around 700,000 new jobs for women, with around half of these jobs in the childcare sector, and extend provision to the levels in Sweden and Denmark.

The economists estimated that the initial net cost to the Government of establishing universal childcare provision would be just under 3bn a year at current prices, after taking account of the increased tax revenues and reductions in social security benefits as more mothers of young children went to work. 'These additional jobs would generate additional tax revenues for the Government, offsetting around 60 per cent of the cost to the Exchequer of the additional childcare provision,' the report said.