- New research by the Early Education and Childcare Coalition and LSE reveals that current UK childcare support schemes are failing to help many parents reduce debt or increase their working hours.
- Polling shows almost half of parents using tax-free childcare or Universal Credit support say existing policies have not enabled them to work extra hours or lower their levels of debt.
- The report identifies cliff edges in the system that disincentivise higher earnings, such as steep drops in funding coverage when moving between different support schemes.
- Combining existing initiatives into a single subsidy system could enhance work incentives and raise household incomes without substantial extra costs for the government.
- The Department for Education highlighted that eligible parents now access 30 hours of funded care per week, adding that its ongoing review aims to make the system simpler and fairer.
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