The report, Mothers' Employment and Childcare Use in Britain, published last week by the Institute for Fiscal Studies, said a combination of a huge shortage of daycare places and the cost of formal provision was preventing many mothers of young children from returning to work. It also highlighted a link between the shortage of places and the likelihood that a mother works, citing statistics of eight day nursery places for every 100 children aged under five, seven childminder places for each 100 children under eight, and six out-of-school club places for every 100 children aged five to seven.
The introduction of the Working Families Tax Credit (WFTC) and its childcare tax credit element had had a 'relatively limited effect' on employment opportunities for mothers, according to the report. It said that while childcare subsidies cost the Government a lot, they made little impact on mothers' employment, although 'greater use and quality of formal care' was a welcome side effect.
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