Current government funding for childcare is discriminatory, complex, confusing and doesn't give families the flexibility they require - finds new research.

Little Britons, by the thinktank Policy Exchange, advised by Dr Catherine Hakim, senior research fellow in sociology at LSE, proposes the government replaces the current system comprising childcare vouchers, the childcare part of Working Tax Credits, and the Sure Start Maternity Grant - to provide a single Parental Care Allowance.

This would mean a new system of £50-60 per week paid direct to all parents with children under three, (after maternity pay has ceased) regardless of how many children are in the family, untaxed, and administered under the child benefit system which is already in place.

The current system of support is linked to employment with the government keen to get single mothers into full time work, yet a substantial proportion of first time mothers want to look after their own children.

Dr Hakim said: 'Numerous studies into parental preferences regarding childcare have revealed a much greater diversity of parental preferences than the government would like to believe. One recent study from the Economic and Social Research Council (ESRC) showed that, in an ideal world, only one-third of mothers in Britain would use any childcare at all before their child’s third birthday'.

Parents also cannot pay for informal care (family members) on the current system and there is a great disparity between the amount different types of families can receive in support - for example a low income couple working full time receive 13 per cent for their childcare costs per year for a child under two, a low income couple with one parent working part time (thus requiring fewer hours of childcare) receive 55 per cent of their costs and an average income single parent who receives 40 per cent.

The report concludes that the proposed system would be easy to administer, flexible in supporting parents who stay at home to look after young children or supporting them to select the childcare of their choice, provides main carers with supplementary income if they give up work and gives parents greater choice.

Click here to download the full report Little Britons: financing childcare choice (PDF)

21 April 2008

Press Cuttings

Daily Telegraph (21 April)
Pay mothers to stay at home, says study
Catherine Hakim, of the London School of Economics and one of the report's authors, said: ‘Numerous studies into parental values regarding child care have revealed a much greater diversity of parental preferences than the Government would like to believe. One study showed that, in an ideal world, only one third of mothers in Britain would use any child care at all before their child's third birthday.’
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2008/04/21/nmums121.xml

Marie Claire (21 April)
Pay mums to stay at home
But Catherine Hakim, of the London School of Economics and one of the report's authors, said: 'Numerous studies into parental values regarding childcare have revealed a much greater diversity of parental preferences than the Government would like to believe. One study showed that, in an ideal world, only one third of mothers in Britain would use any childcare at all before their child's third birthday.'
http://www.marieclaire.co.uk/news/252870/pay-mums-to-stay-at-home.html

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