Welfare Childcare fails to meet needs of growing numbers of parents working out of hours 16 June 2011 Childcare provision has failed to keep up with changing working patterns – with nearly 70% of all working parents now working ‘atypical’ hours. Many are struggling to find suitable childcare provision as a result, according to a new report from the independent think tank the Resolution Foundation. The report shows that at least one partner in 75% of families on low-to-middle incomes and in over 90% of families on higher incomes works outside the hours of 8am-6pm, once thought of as the normal working day. The growth in service sectors has meant that UK workers are more likely to work on weekends or at night including in shops, hotels, restaurants and in health and social work. This is piling pressure on families as childcare provision fails to keep pace with changing working patterns. A recent OECD report also found that the UK has some of the most expensive childcare in the world. The Government’s plans to reform support for childcare costs in the new Universal Credit are being debated this week in the Welfare Reform Bill. But current plans will add to the growing childcare crisis as they reduce the support available for many parents, and will mean some are actually worse off the more hours they work. More affordable and flexible childcare is critical to maintaining the living standards of families on low-to-middle incomes, the report warns. Vidhya Alakeson, Director of Research at the Resolution Foundation said: ‘Growth in the numbers of women working has been an important contributor to rising living standards for families. But childcare provision simply hasn’t caught up with how families are living and working today. Many British mothers simply can’t afford to work more hours, whether they want to or not. More flexible and affordable childcare is critical to supporting choice.’ Notes to editors 75% of families on low-to-middle incomes and over 90% of families on higher incomes works outside the hours of 8am-6pm: Source: Resolution Foundation analysis of Childcare and Early Years Providers Survey 2009 The Government’s plans to reduce support for childcare in the new Universal Credit are examined in Childcare Support and the Hours Trap, a recent report by Donald Hirsch for the Resolution Foundation. This shows a second earner in a couple with two children on the living wage of £7.20 an hour would keep only 9p of every pound earned over 20 hours a week, and take home no extra cash at all from working beyond 30 hours a week. Source: Hirsch, D. (2011) The Hours Trap A recent OECD report found that the UK has some of the most expensive childcare in the world – accounting for 25 percent of average income in 2004, compared to 14 percent in the EU24 and 16 percent in the OECD. Source: OECD (2011), Doing Better for Families. Less than 20 percent of British mothers of school-age children work over 40 hours compared to nearly 54 percent in the EU-24: Source: OECD Family Database The Resolution Foundation is an independent think tank that aims to improve the lives of households on low to middle incomes www.resolutionfoundation.org