Childcare costs and poverty

Think tank: Social Market Foundation

Author(s): Scott Corfe

July 21, 2022

This report from UK think tank the Social Market Foundation looks at the impact of childcare costs on those on lower incomes.

We’ve published the further analysis of the childcare crisis and its impact on low-income households, for a cross-party commission on childcare led by Siobhain McDonagh MP and John Penrose MP. Childcare costs in the UK are contributing to poverty and gender inequality. Our analysis found that the impact of being dragged out of the labour market to look after children has a long-term, scarring effect on wages. Something needs to be done to reduce the impact of childcare costs on household budgets and the ability of women to remain – and flourish – in work. With the UK in the grip of a cost-of-living crisis, politicians looking to provide solutions need to ensure that fixing childcare is a high priority. We’ll be engaging with stakeholders and developing policy solutions in Autumn – to find ways to improve provision.