The Daycare Trust and Save the Children poll of more than 4,000 parents found that 61 per cent of parents living in severe poverty, with a household income of less than £12,000 per annum, are struggling to pay for childcare, compared to around a third of parents on higher incomes.
Because of high childcare costs, a quarter of parents in severe poverty have given up work and a third have turned down a job.
The cut to the working tax credit has meant that four in ten working families in severe poverty are considering giving up work as they no longer earn enough to cover the childcare bill. The cut has added on average £500 per year to the childcare bill for low income families.
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