The Women in the Labour Market report explores how affordability and the lack of access to childcare is acting as a barrier to women across the labour market.

The report examines the challenges facing women and how government action and policy can ensure mothers across the country have access to affordable childcare.

Access is a struggle

New survey evidence from 2000 mothers reveals that, among mothers across the UK, 46% ‘struggled to find suitable childcare.’ Among those who reported struggling with access to childcare, it was found that:

• 46% were prevented from taking on more hours at work (equating to 1.7 million women)
• 34% were prevented from taking a potential job (equating to 1.3 million women)
• 30% had to reduce the hours that they worked (equating to 1.1 million women)
• 15% had to quit their job (equating to 560,000 women).

Recommendations

Reflecting the needs and expectations of working mothers, this report puts forward a series of recommendations to ensure that every working mother is entitled to flexible working arrangements that improve access to childcare and support them in the workplace.

Fair funding for subsidised care

• Implement a new audit process to determine the cost of delivering subsidised care so that the government pays a fair price. Ensuring that providers receive a payment that fairly reflects the cost of care will help reduce financial pressures and improve the capacity and resources of providers at a cost of between £509m and £801m
• Increase the amount of subsidised care for children aged three and four from 570 to 720 hours a year
• Introduce a 720-hour subsidised care package for children during the first two years of their life. A funding package of £1.8bn should be made available to provide 720 hours of free care during the first two years of a child’s life.

Increase capacity in the childcare sector

• Establish a central government fund to invest in after-school activities and holiday care.
• Create a new ‘What Works Centre’ for childcare. What Works Networks have a track record of investigating best practice across a wide range of policy areas.

Commenting, Neil Leitch, chief exec of the Early Years Alliance, said: 

“We know that quality, affordable childcare plays a vital role in supporting parents – and primarily, mothers – to participate in the workforce. However, the harsh reality is that years of government underfunding have forced many early years providers to either restrict their hours or increase fees and charges to stay afloat, making it increasingly difficult for mothers with young children to return to and remain in work.

“As CPP’s report points out, this not only results in lost earning potential for women, but also costs the economy billions in foregone tax revenue. It’s time for the government to recognise that a strong and sustainable economy cannot be achieved without a strong and sustainable early years sector, and commit to investing what is needed to fix our broken childcare system.”