An analysis of childcare costs by the IPPR claims that the Government’s plans for the scheme – more details of which are expected in the Chancellor’s Autumn Statement tomorrow – will not make the cost of childcare more affordable for families.
The think-tank says that a longterm solution is needed and that the scheme only offers a 'short-term fix'.
Its data shows that taking Tax-Free Childcare into account and inflation, the percentage of family income spent on childcare would continue to rise, from 25.4 per cent in 2013 to 27.8 per cent in 2018.
The IPPR’s solution is to call for a more radical approach to curb spiraling childcare costs, with direct payments to nurseries and childminders, or direct childcare provision available for families.
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