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4 in 10 parents on lower incomes in debt to pay for childcare

Four in 10 working parents have been forced into debt to pay childcare fees while over half have had to reduce their hours, according to research.

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A survey of over 2,000 parents in employment with a total household income of £50,000 or less highlighted the challenges that lower-income parents in the UK face as they balance work and caring for their children.

 

The research, conducted by Working Families, showed that over half of working parents on lower incomes (51%) have had to reduce their hours and one in five have had to quit a job to manage childcare needs.

 

As the cost-of-living crisis squeezes households across the UK, working mothers surveyed took four months’ less maternity leave than the UK average because of financial worries and concerns over job security.

 

Read more: BT to axe 55,000 jobs

 

Working Families, a charity which aims to remove the barriers that people with caring responsibilities face in the workplace, is calling for more opportunities for flexible working to enable parents and carers to remain in the labour market.

 

Jane van Zyl, Chief Executive of Working Families, said: "No parent should have to reduce their hours, leave the workforce altogether, or go into debt to pay for childcare. No parent should have to miss valuable time with their new baby because statutory levels of pay aren’t enough to survive on. And no parent should be prevented from accessing flexible working just because they don’t work at a desk in a knowledge-based industry.

 

Read more: Access to data holding back pay equality

 

The research found that working parents on lower incomes are twice as likely to have an informal flexible working request rejected than the average parent.

 

Those who had successfully requested flexible working were a third less likely to have to quit their job to manage childcare, while 25% less likely to fall into debt, and half as likely to have had their mental health negatively impacted due to the difficulty accessing childcare than those who had had their request rejected.

 

"It is clear that flexible working is no longer a nice-to-have; it is a must-have, particularly for those at the sharp end of the cost-of-living crisis," van Zyl said.

 

Read more: Women receive 50% less than males in average pension fund

 

"Not only can it enable parents and carers who would otherwise be locked out of the labour market to work; it also helps families better manage childcare, freeing up valuable income."

 

Working Families is calling on the government takes steps to improve the experience of low-income working families in the UK with more affordable and accessible childcare as well as greater job security and advance notice of schedules for shift workers.

 

Co-head of Equality Law Pinsent Masons, Kate Dodd, said: "It’s clear that the UK’s approach to childcare and access to flexible, agile working requires a significant rethink and fresh perspective backed up by legislation which serves to enable every working family to succeed. 

 

Read more: Employees prioritise wellbeing above overachieving

 

"Opportunities to work flexibly and to benefit from accessible childcare cannot be available only to families who are already financially comfortable. It’s vital that Government acts on the important and sobering issues demonstrated by the participants of this survey and takes steps to improve the experience of low-income working families in the UK. 

 

"This is a business issue as well as a moral imperative as all businesses need a thriving and diverse workforce to maintain resilience through the cost-of-living crisis."

 

 

Neil Leitch, CEO of the Early Years Alliance echoed the calls telling Reward Strategy it "simply unacceptable" that parents are having to reduce their working hours, leave work and fall into debt. 

 

"For years now, nurseries, pre-schools, childminders and baby and toddler groups have done everything they can to prevent passing on increased costs to parents. But, the simple fact is that government underfunding makes this impossible, leaving providers to choose between increasing their fees, or closing completely. 

 

Read more: 4 in 10 parents on lower incomes in debt to pay for childcare

 

"What’s more, as Working Families’ research shows, this is acutely affecting parents on lower incomes. Every child, regardless of their income or background should have the opportunity to benefit from early education. Yet, despite the reams of research underlining the sector’s importance the government has yet to recognise the severity of the situation. Instead, it has opted to pile even more pressure on providers through the planned increase of the 30-hour offer announced in last month’s budget.  

 

"It is absolutely vital, therefore, that, as government explores how it will implement their early years expansion plans, it uses it as an opportunity to work with the sector to ensure it can survive the coming months and years." 

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