In the past, men went out to work while women stayed home to run the house and look after the children. However, society has progressed somewhat since the days in which this was the norm, and now both sexes often choose to continue with their jobs after having children. Unfortunately, this can pose the often difficult question of who will take care of the kids while Mum and Dad are at work.
Childcare costs have soared in the past few years, with Britain now boasting some of the highest hourly rates for child minders or professional nurseries in the world. In fact, the expense has become so great that a study, conducted by the Resolution Foundation think tank, has indicated that, if both parents in a family work, the second wage can be all but wiped out by the cost of childcare.
Yet it is not just low-income families that can struggle to afford childcare while the parents go to work, as middle and high earners can end up shelling out a substantial percentage of their wage too. This is due to the tax and benefits system in the UK somewhat levelling the playing field – although, sadly, this equates to middle and high earners struggling, rather than low earners being given more financial relief.
For example, a couple with two children whose combined earnings amount to £20,000 per annum above the minimum wage will see their extra income all but wiped out, thanks to the high costs of putting their children into a nursery while they go to earn a living.
Meanwhile, a professional couple earning double the national minimum wage will spend 30 per cent of their annual income on childcare.
Clearly this is a growing problem in a country newly emerged from recession, as families will now begin to attempt to build up their disposable income for luxury items once more, rather than saving every penny they can. However, if a high percentage of household income is spent on childcare, parents are more likely to continue saving – which could be bad news for the retail industry, a sector that has suffered greatly over the past four years.
The study, which is entitled “Counting the Costs of Childcare”, is geared towards updating the childcare system in the UK and taking some of the pressure off working families.
Vidhya Alakeson, a joint author of the research, says; “Despite progress over the past decade, the cost of childcare in the UK still eats up a very large slice of family incomes.
“It is hardly worth a typical second earner going out to work more than a couple of days a week, because the family will be barely better off as the extra money is swallowed up.
“We need major change in our childcare system to ensure that work is always worthwhile – and that working more hours or a pay rise results in higher take home pay.”
Many businesses in the UK now choose to run a day care centre for the children of employees, thus allowing workers to pay for childcare but at a reasonable cost. This also gives mothers returning from maternity leave an easier transition period as they can check on their baby during breaks.
However, these businesses still remain a small minority, and not all workplaces are suitable for this type of scheme – retail properties or leisure properties such as bars and restaurants being prime examples of this.
There is a Government commission currently investigating the childcare situation in the UK, after being initiated by David Cameron in June. We can only hope that a solution is found, thereby lifting some of the financial pressure from hardworking families in this country.
Do you use childcare facilities for your children, or have you chosen to become a single earner household in order to remain at home with them? How do you think the UK could lower the high cost of childcare, or do you think that the standard of childcare merits the high prices charged currently?
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