Unlock the Editor’s Digest for Free: Improving Childcare Affordability and Flexibility
Roula Khalaf, the Editor of the FT, shares her handpicked stories in this weekly newsletter. In this edition, we delve into the challenges faced by UK mothers paying for childcare and explore potential solutions to enhance affordability and flexibility.
It’s no secret that working mothers in the UK face significant financial obstacles when it comes to childcare. In fact, a startling three-quarters of UK mothers who pay for childcare find that working is no longer financially viable, according to advocacy group Pregnant Then Screwed. The cost of childcare in the UK has skyrocketed in recent years, with an increase of over 40% for children under the age of two over the past decade. As a result, the UK now ranks as one of the most expensive countries in the world for childcare.
Compounding this issue, the UK’s Office for National Statistics reports a concerning decline in the number of women in the labor force, a trend that has been further accelerated by the COVID-19 pandemic. However, amidst these challenges, there are numerous policy solutions that can be drawn upon to improve the affordability and flexibility of childcare.
Taking inspiration from countries around the world, we find innovative approaches to this issue. Japan, for example, offers a year of paid paternity leave, providing fathers with the opportunity to take a more active role in childcare. In Sweden, parents have a legal right to reduce their working hours until their children reach the age of eight. Additionally, in the Netherlands, it is increasingly common for employers to offer flexible working hours for fathers, allowing them to dedicate one day a week to childcare responsibilities.
However, based on my previous role as the head of digital at the UK Treasury, I discovered that the real challenge lies in policymakers actively listening to parents and genuinely incorporating their perspectives into policy-making processes.
As an example, during a consultation on the design of the Tax-Free Childcare scheme in 2013, civil servants utilized a survey that I collaborated on to gather insights from working parents. The survey received an overwhelming 35,000 responses, setting a record for government polls. However, I witnessed first-hand the reluctance of policy officials to truly consider and implement the suggestions put forth by parents. This lack of responsive engagement ultimately resulted in subpar take-up of the scheme, leaving families without the much-needed support they sought.
To address this issue, it is essential for policymakers to actively listen to parents when designing childcare policies. Seeking their input through formal consultation processes and making all citizen responses public can foster accountability and ensure solutions are aligned with the needs of parents.
Additionally, it is crucial for employers to prioritize the voices of their employees and take meaningful action to support working parents. While companies often survey their workforce to gauge their perspectives, it is essential for HR leaders to build data-driven business cases that demonstrate the benefits of flexibility and childcare support to senior management. Not only does this improve staff retention, but it also positively impacts profitability. According to a Gallup global workplace report, businesses with high employee engagement are typically 23% more profitable than those with low engagement.
Moreover, a report by the Centre for Progressive Policy highlights that better access to childcare could unlock the potential of 1.5 million women in the UK, contributing an additional £27 billion to the economy, equivalent to 1% of GDP.
In conclusion, improving the affordability and flexibility of childcare requires policymakers and employers to genuinely listen to the voices of parents. Incorporating their insights and designing policies that meet their needs will help alleviate the financial burdens faced by working mothers and contribute to a more inclusive and prosperous society.
This article has been adapted from the winning entry to the FT’s 11th annual essay competition. The focus of the essay was on the role that employers and policymakers can play in addressing the challenge of affordable and flexible childcare. The judging panel for the competition included esteemed professionals from various fields, ensuring a comprehensive evaluation of the ideas presented.
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