Chancellor urged to tackle childcare crisis in Spring Budget

(2 minutes to read)

FSB: ‘To make sure more people can work, and we can secure growth in the long term, the Chancellor has a real opportunity to tackle the domino effect that rising childcare costs have on the workforce’.

With the Spring Budget being announced this week, the Chancellor is being urged to help more people work by tackling the childcare crisis.

UK childcare providers are facing insufficient funding from the government, which is creating a tough decision of either having to shut down or pass the costs onto parents and carers.

With the cost-of-living crisis meaning that so many parents and carers are already struggling, some will be forced to choose between childcare and careers.

FSB Policy Chair, Tina McKenzie, said, “It’s time to reduce the burden on childcare providers and improve the affordability and accessibility of childcare for all parents.

“Childcare businesses are in dire straits: trying their best to provide affordable services but end up taking a loss under Government funded hours, shutting up shop completely or passing the costs onto already-stretched parents.

“This means parents are faced with an ultimatum: to leave the workforce altogether or take on the extra, crippling costs with less and less choice when providers are forced to close.”

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Tina added, “To make sure more people can work, and we can secure growth in the long term, the Chancellor has a real opportunity to tackle the domino effect that rising childcare costs have on the workforce. It keeps parents and carers away from their jobs, puts providers out of business and holds the economy back as a whole.

“We’re pushing for changes to ensure more parents can access affordable childcare, allowing them to work and stimulate the economy without having to worry about high costs, and to help a childcare sector that’s been put under huge pressure from under-provision of per hour funding from the Government.

“These changes would ensure that parents – who will play a big role in helping economic recovery – can access affordable childcare, and providers won’t feel caught between a rock and a hard place.”

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