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This is a childcare crisis of David Cameron's own making This is a childcare crisis of David Cameron's own making
(7 months later)
Next week's budget will, according to David Cameron, be more of the same. It will be disastrous if it is, not just for an economy that has flatlined, but for families who are feeling squeezed. Parents have lost most of all, through cuts in family support and childcare. It's time for the prime minister to put that right.Next week's budget will, according to David Cameron, be more of the same. It will be disastrous if it is, not just for an economy that has flatlined, but for families who are feeling squeezed. Parents have lost most of all, through cuts in family support and childcare. It's time for the prime minister to put that right.
New figures today show that, by the next general election, five years of David Cameron in Downing Street will have cost parents £15bn, and up to £7bn a year by 2015.New figures today show that, by the next general election, five years of David Cameron in Downing Street will have cost parents £15bn, and up to £7bn a year by 2015.
There's no doubt that everyone on low and middle incomes is feeling it in their pockets. Parents with newborns are losing thousands in childcare grants. Families on higher incomes are losing thousands in child benefit.There's no doubt that everyone on low and middle incomes is feeling it in their pockets. Parents with newborns are losing thousands in childcare grants. Families on higher incomes are losing thousands in child benefit.
But for one group things are set to get easier – the handful of people who earn more than £1m, who will get a £100,000 tax cut in just three weeks' time.But for one group things are set to get easier – the handful of people who earn more than £1m, who will get a £100,000 tax cut in just three weeks' time.
While they're the people being helped by this government, struggling parents have been the biggest losers – hit with cuts to tax credits and maternity pay, and with Sure Start stripped back and child benefit taken away. And there are 401 fewer children's centres than in 2010, as early-years budgets have been badly hit.While they're the people being helped by this government, struggling parents have been the biggest losers – hit with cuts to tax credits and maternity pay, and with Sure Start stripped back and child benefit taken away. And there are 401 fewer children's centres than in 2010, as early-years budgets have been badly hit.
At the same time as families get less support and incomes are falling, childcare costs are rising. It's no wonder we're seeing a crisis in the affordability of childcare. Incredibly, at one central London nursery, you would have to pay £42,000 a year for one full-time nursery place – that's nearly twice what most people earn.At the same time as families get less support and incomes are falling, childcare costs are rising. It's no wonder we're seeing a crisis in the affordability of childcare. Incredibly, at one central London nursery, you would have to pay £42,000 a year for one full-time nursery place – that's nearly twice what most people earn.
This is the childcare triple whammy: less support, fewer places and higher costs.This is the childcare triple whammy: less support, fewer places and higher costs.
Yet it is a childcare crisis of David Cameron's own making. Support for childcare has been slashed, and families with two children have lost up to £1,500 in childcare tax credit. They haven't got that kind of cash to spare to pay their extra childcare bills, and many have been forced to give up work or cut their hours instead.Yet it is a childcare crisis of David Cameron's own making. Support for childcare has been slashed, and families with two children have lost up to £1,500 in childcare tax credit. They haven't got that kind of cash to spare to pay their extra childcare bills, and many have been forced to give up work or cut their hours instead.
The truth is, if you cut childcare support, you hurt the economy. Taking away help for families means there is less chance for parents – especially mothers – to go back to work.The truth is, if you cut childcare support, you hurt the economy. Taking away help for families means there is less chance for parents – especially mothers – to go back to work.
The government is also undermining the quality of childcare. A report by two expert academics, which the Department for Education refuses to publish, warned that the plan to increase the number of children each nursery staff member looks after would threaten quality and not reduce costs.The government is also undermining the quality of childcare. A report by two expert academics, which the Department for Education refuses to publish, warned that the plan to increase the number of children each nursery staff member looks after would threaten quality and not reduce costs.
The prime minister boasted at prime minister's questions last Wednesday that he would help with childcare. We hope that's right, but it will be only a drop in the ocean compared with the £15bn he's taken away. He will be judged by the cuts to childcare and family support he has made so far.The prime minister boasted at prime minister's questions last Wednesday that he would help with childcare. We hope that's right, but it will be only a drop in the ocean compared with the £15bn he's taken away. He will be judged by the cuts to childcare and family support he has made so far.
The chancellor should be providing immediate help for families struggling to afford childcare because of the cuts he has made. If the prime minister has found money to start making good the damage done so far, they could start, for example, by reversing cuts to childcare tax credits.The chancellor should be providing immediate help for families struggling to afford childcare because of the cuts he has made. If the prime minister has found money to start making good the damage done so far, they could start, for example, by reversing cuts to childcare tax credits.
Stopping cuts to maternity pay, stopping the bedroom tax and restoring the 10p rate (paid for by a mansion tax) would be much fairer than cutting taxes for millionaires too. Either way, he must make sure low- and middle-income families get help as they are struggling most to afford childcare and stay in work.Stopping cuts to maternity pay, stopping the bedroom tax and restoring the 10p rate (paid for by a mansion tax) would be much fairer than cutting taxes for millionaires too. Either way, he must make sure low- and middle-income families get help as they are struggling most to afford childcare and stay in work.
The most cost-effective step towards expanding childcare provision would be to extend free places for three- and four-year-olds from 15 to 20 hours a week. Finding a job that fits in with nursery hours isn't easy, so this would give parents an extra incentive to go back to work, which would be good for our flatlining economy. We also want to see more flexibility in the system for those who don't work standard hours.The most cost-effective step towards expanding childcare provision would be to extend free places for three- and four-year-olds from 15 to 20 hours a week. Finding a job that fits in with nursery hours isn't easy, so this would give parents an extra incentive to go back to work, which would be good for our flatlining economy. We also want to see more flexibility in the system for those who don't work standard hours.
For the medium and longer term, Labour is considering the best way to expand, reform and improve good, affordable childcare.For the medium and longer term, Labour is considering the best way to expand, reform and improve good, affordable childcare.
We need to increase quality as well as making childcare more affordable. That's why Labour's Childcare Commission is looking to countries such as Denmark and Sweden for inspiration. They have outstanding nurseries and higher rates of female employment, and have managed to keep costs down for taxpayers.We need to increase quality as well as making childcare more affordable. That's why Labour's Childcare Commission is looking to countries such as Denmark and Sweden for inspiration. They have outstanding nurseries and higher rates of female employment, and have managed to keep costs down for taxpayers.
We've seen months of dithering and infighting from this government on childcare. If it is at last ready to act, it will be judged against the £15bn bill it has already asked parents to pay. It needs to come forward with a credible plan in this budget – one that will cut costs to parents, and make up for the cuts it has made.We've seen months of dithering and infighting from this government on childcare. If it is at last ready to act, it will be judged against the £15bn bill it has already asked parents to pay. It needs to come forward with a credible plan in this budget – one that will cut costs to parents, and make up for the cuts it has made.
The budget should be providing immediate help for parents, not some promise of support long after the next election.The budget should be providing immediate help for parents, not some promise of support long after the next election.
At the next election, the biggest issue on people's minds will be the cost of living. The question that families will ask is: am I better or worse off than in 2010? Right now families with children know the answer is a resounding no.At the next election, the biggest issue on people's minds will be the cost of living. The question that families will ask is: am I better or worse off than in 2010? Right now families with children know the answer is a resounding no.
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