Women forced out of jobs by rising cost of childcare | The Independent

Due to the rising cost of childcare, many women are priced out of the job market. A report today warns that there is more than one million females unemployed in Britain.

IPPR, a centre-left think tank, suggests that many mothers are choosing to care for their children than to work. This is due to the combination of cutbacks in benefits for families and the negative impact public sector job loss has on women’s employment. The IPPR’s analysis of official statistics revealed that while overall unemployment has declined over the past year it has increased by 42,000 among women.

These findings suggest that the UK could soon have a new generation in stay-at home mothers. They come at a moment when ministers want to encourage more people into work to cut the welfare bill. The report states that while many mothers lose their jobs are forced to find work, it appears that many others decide that staying at home is cheaper than paying for childcare.

Dalia Ben-Galim associate director at the IPPR stated that women are joining the ranks the long-term unemployed and that the prospects for female employment remain dim. “Cuts in childcare tax credits means that some women are no longer able to work and it is better for them to stay at home,” said Dalia Ben-Galim, associate director of the IPPR.

Tomorrow’s speech by Nick Clegg, the Secretary of State for Work and Pensions, will outline the Government’s plans regarding childcare and raising the income tax threshold. This speech will be an attempt to regain female support for the coalition. Iain Duncan Smith (Secretary of State for Work and Pensions) will also be speaking at the event. He plans to make it cheaper for women to work part time than stay home.

The Office for National Statistics data shows that 268,000 women have been out of work for more than one year. The UK has 2.45 million jobless, which is 20,000 less than last year. However, the number of women without work has increased to 1,026,000. In the quarter that ended in March, more than 40% of all redundancies were made by women. This is an increase from 30%. IPPR analysis shows that 143,000 jobs have been lost in the public sector where women are more likely to be employed than men. Last year, however, 520,000 jobs were created by the private sector.

The UK is home to some of the most costly childcare in the world, according to the Organisation for Economic Co-operation and Development. The average cost is £97 a week for 25 hours, rising to an average of £115 a week in London and the South-east.

Before April this year, families with household incomes below £30,000 could reclaim 80 per cent of the cost of childcare, up to a maximum of £175 per week for one child and £300 for two or more. Ministers are trying to reduce welfare costs and families now have a 70% chance of reclaiming the difference. This affects nearly half a billion families. The Resolution Foundation think tank, which campaigns for the so-called “squeezed middle”, says that the change has led to the average family losing £436 a year, with some losing as much as £1,300.

The Government plans to end existing benefits and replace it with Universal Credit. This is likely to make many families less well off.

Daycare Trust’s chief executive Anand Shukla stated that British parents contribute more to childcare than any other OECD nation. This results in many women being priced off the labour market and having to quit careers they love simply because it is expensive to do so. This situation will only get worse with the reduction in the amount of childcare costs covered through working tax credits in April this year, which effectively added an extra £546 to the annual childcare bill for many families.”

Harriet Harman is Labour’s deputy leader. She stated that “Women are key to household budgets. In lone-parent households, it is crucial for children to have access to work and is essential to the economy.

The economic viability of childcare is threatened by the increasing cost of childcare and their declining pay. The cost that will be incurred is not only paid by the economy but also by the families.

Case Studies

Jenni Dyer is a part-time equality/diversity manager

Jenni Dyer, 37 years old, is from Upminster in Essex. She works for the Institute of Physics and 80 percent of her earnings goes on childcare for her children (four and two). Their nursery hours are from 7.30am to 6.30pm three days per week. She and her husband Peter, a project manager for a construction company, are expecting their third child next month, when Mrs Dyer is considering giving up work, because the costs are so high – nearly £1,000 a month in nursery fees, even after the Government’s 15 free hours a week. I have just enough to justify working, but not a lot. Because there is an after-school club to cover, school costs will continue to be high when my daughter starts. My employer is supportive of my job, which is encouraging more women to pursue science. It is tragic that this report finds women are being priced out of work – so many skills are being lost.”

Rey, Teacher

Rey, 32 is a qualified secondary school RE instructor, and she is married to Andrew (33, an operation manager in the ambulance company). Rey and Andrew have a daughter, seven years old, as well as twin boys, who are both two-and a half years old. Because childcare costs would have made her family poorer, she quit her job at 18 months to care for her twins. She says, “It was a big decision for me because it was something I loved.” “It’s wonderful being at home with the children, but it is very difficult. My husband works overtime to make up for the money I lost. We lost child tax credit because he earns around £35,000.

“I get the opportunity to attend all my daughter’s sporting events, and being at home is great. But there should be a little balance. Although I would love to work part time, we can’t afford it.