Childcare credit reform ‘will penalise some women’

28th Nov

More in regards to the childcare – spending cuts and how this new bill might actually effect women more if they are on minimum wage then the original agreements.


Childcare credit reform ‘will penalise some women’

  • In September, the government announced that £300m would be made available for childcare costs.
  • An analysis for the Resolution Foundation by academic Donald Hirsch found the change would benefit those working less than 16 hours a week.
  • second earner in a family working 16 hours a week on the minimum wage would, coming into effect in 2013, take home £17 a week after childcare costs – around £1 an hour – compared with £46 a week under the previous system.
  • A single parent on a wage of £10.80 an hour, such as an entry-level midwife who wants to increase their weekly hours from 28 to 32 will, under universal credit, take home just over £6 for working the extra four hours, compared with £25 previously.
  • The problem arose when the government initially said it would cut the amount it contributes towards childcare from 80% of the costs to 70%, meaning a low-income family went from having to find 20% of childcare costs to 30% – a rise of 50%.

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