Britain's system of parental leave is one of the most backward in the developed world, making impossible demands of those parents who are most in need, while redistributing wealth to the wealthy.
The outdated system offers parents no flexibility in their work/life balance, while funnelling more and more money to cover childcare costs has allowed nurseries to become unresponsive to the diverse needs of modern parents. Tax credits and childcare vouchers have been ineffective in bringing help to those most in need, and have encouraged a runaway and unsustainable increase in nursery spaces.
With occupancy rates falling to 70 per cent, nurseries have found it hard to keep their businesses open. And the cost of childcare has soared beyond the reach of the poorest.
Restrictive regulation that has crushed the 'cottage industry' of childminders and hindered start-up nurseries must be wound back. Parents want flexibility and freedom of choice, not gimmicky benefits that limit their childcare options. They want more choice of childcare providers and to become more engaged in their children's nursery care.
But to liberate childcare, we must modernise parental leave. In its recent report on parenthood, Reform called for maternity pay to be replaced with a £5,000 payment shared between parents over six months, and for mothers and fathers to be given equal entitlements to unpaid leave. This would give parents the freedom to balance work and family, and make childcare work for them.
- Reform is an independent think-tank
