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| Childcare costs 'keep many in poverty' - Barnardo's | Childcare costs 'keep many in poverty' - Barnardo's |
| (about 1 hour later) | |
| It is "impossible" for some of the UK's poorest families to work their way out of poverty because of high childcare costs, a charity has warned. | It is "impossible" for some of the UK's poorest families to work their way out of poverty because of high childcare costs, a charity has warned. |
| A report by Barnardo's says some single parents with two pre-school children will "potentially have to pay to go to work" despite imminent welfare changes. | A report by Barnardo's says some single parents with two pre-school children will "potentially have to pay to go to work" despite imminent welfare changes. |
| The universal credit benefit system due this year will replace a number of existing working-age benefits. | The universal credit benefit system due this year will replace a number of existing working-age benefits. |
| Ministers have said that the changes will make it easier for people to work. | Ministers have said that the changes will make it easier for people to work. |
| Children aged three and four, and many two-year-olds from the poorest families, are entitled to 15 hours of free early years education in the UK. | Children aged three and four, and many two-year-olds from the poorest families, are entitled to 15 hours of free early years education in the UK. |
| But in its href="http://www.barnardos.org.uk/publication-view.jsp?pid=PUB-1921" >Paying to Work report, Barnardo's - the UK's largest children's charity - suggests parents trying to work extra hours face paying for childcare while simultaneously having their benefits reduced, and starting to pay tax. | |
| This combination, it says, "will potentially leave some parents with very little money left over". | This combination, it says, "will potentially leave some parents with very little money left over". |
| 'Pay to work' | 'Pay to work' |
| The report suggests that a single parent with two pre-school children, who tries to work up to 24 hours a week on the national minimum wage of £6.19 an hour, will "gain nothing from working more hours". | The report suggests that a single parent with two pre-school children, who tries to work up to 24 hours a week on the national minimum wage of £6.19 an hour, will "gain nothing from working more hours". |
| "Lone parents with two pre-school children will potentially have to pay to go to work," it adds. | "Lone parents with two pre-school children will potentially have to pay to go to work," it adds. |
| Some single parents could effectively end up paying 28p per hour to work, while those in London could pay 91p for every hour of extra work they do, according to the report. | Some single parents could effectively end up paying 28p per hour to work, while those in London could pay 91p for every hour of extra work they do, according to the report. |
| The charity calculates that a single parent with two pre-school children living in London will pay £1.61 per hour more than they earn if they work 28 hours or more. | The charity calculates that a single parent with two pre-school children living in London will pay £1.61 per hour more than they earn if they work 28 hours or more. |
| And for those with one pre-school child, each extra hour worked between 16 and 24 on the minimum wage will potentially gain only £1.10. | And for those with one pre-school child, each extra hour worked between 16 and 24 on the minimum wage will potentially gain only £1.10. |
| Barnardo's report comes ahead of the coalition's mid-term review, which is expected to unveil a series of initiatives to mark the halfway point in the government, including pledges on childcare costs. | Barnardo's report comes ahead of the coalition's mid-term review, which is expected to unveil a series of initiatives to mark the halfway point in the government, including pledges on childcare costs. |
| Speaking to BBC Radio 4's Today programme, Barnardo's chief executive Anne Marie Carrie welcomed any move to help with the expense of childcare - which she said was the "single biggest barrier to raising children out of child poverty, and to people progressing on in work". | Speaking to BBC Radio 4's Today programme, Barnardo's chief executive Anne Marie Carrie welcomed any move to help with the expense of childcare - which she said was the "single biggest barrier to raising children out of child poverty, and to people progressing on in work". |
| However, she warned that changes introduced under the Universal Credit system would not help the poorest "strivers" for whom "work doesn't pay". | However, she warned that changes introduced under the Universal Credit system would not help the poorest "strivers" for whom "work doesn't pay". |
| 'Work, not hand-outs' | 'Work, not hand-outs' |
| She also urged the government to raise the proportion of childcare costs parents could claim back from 70% to 80%. | She also urged the government to raise the proportion of childcare costs parents could claim back from 70% to 80%. |
| "If we want the poorest parents to be genuinely able to work their way out of poverty, then they must be able to afford the costs of childcare. This is why we're calling on the government to provide more help to the most disadvantaged families". | "If we want the poorest parents to be genuinely able to work their way out of poverty, then they must be able to afford the costs of childcare. This is why we're calling on the government to provide more help to the most disadvantaged families". |
| Universal credit, which comes into force this year, will replace a number of existing working-age benefits, including the income-based jobseeker's allowance, income-related employment support allowance, housing benefit, working tax credit, child tax credit and income support. | Universal credit, which comes into force this year, will replace a number of existing working-age benefits, including the income-based jobseeker's allowance, income-related employment support allowance, housing benefit, working tax credit, child tax credit and income support. |
| Millions of existing claimants will be transferred onto the new system over a period of about four years, with the expectation that most people will apply for benefits and manage them online. | Millions of existing claimants will be transferred onto the new system over a period of about four years, with the expectation that most people will apply for benefits and manage them online. |
| Work and Pensions Secretary Iain Duncan Smith has promised universal credit "will put work, rather than hand-outs, at the heart of the welfare system". | Work and Pensions Secretary Iain Duncan Smith has promised universal credit "will put work, rather than hand-outs, at the heart of the welfare system". |
| Are you finding childcare costs too expensive? Will you be affected by forthcoming benefit and tax credit changes? Send us your comments and experiences using the form below. | Are you finding childcare costs too expensive? Will you be affected by forthcoming benefit and tax credit changes? Send us your comments and experiences using the form below. |