NEW BUSINESSLDN/CENTRAL DISTRICT ALLIANCE SURVEY
More than half of parents and carers in London are struggling to afford their childcare, with the cost pushing many into debt. That’s according to a new survey of more than 1000 parents and carers that use childcare services in the capital by BusinessLDN and the Central District Alliance business improvement district.
The survey, carried out by Censuswide during the summer, asked parents and carers to rate the cost, accessibility and quality of their childcare. It found that on average Londoners are spending more than a third (36%) of their monthly personal income on childcare, with 53% rating it as unaffordable, and nearly half (49%) saying the cost had pushed them into debt. Despite this, over two-thirds (68%) rated the quality of their childcare as good or excellent.
With businesses experiencing chronic skills shortages and families facing a cost-of-living crisis, BusinessLDN is calling on the Government to take further steps to boost the affordability and availability of childcare to support labour market inclusion.
Muniya Barua, Deputy Chief Executive at BusinessLDN, said: “The current system of childcare is not working for families, businesses and the economy.
“While the Government has announced some helpful measures to expand free hours and provide extra funding for providers, these do not go far enough. A bold and comprehensive plan to reform childcare is needed to get more parents and carers into jobs and to help address the juggling act that they face.
“At the same time, employers can also help by offering greater flexibility on working hours, boosting their maternity and paternity packages, and providing childcare vouchers.”
Debbie Akehurst, CEO of Central District Alliance, added: “Following our Un_Biased Report earlier this year, where childcare was also identified as the most prominent barrier to success in women’s work lives, we are concerned about these latest findings.
“The career progression of many is often restricted by a lack of affordable childcare, which inhibits their ability to work. With businesses facing high staffing vacancy and turnover rates, the need for a urgent reform of childcare provision is now more vital than ever.
“By creating more affordable childcare solutions, more parents and carers will be able to rejoin the workforce or increase their working hours; not only relieving their own financial pressures but enabling businesses to flourish and boosting the economic growth of our business centres.”
The survey also found that parents and carers value support from their employers to help with childcare, with the following most highly prized: paid maternity/paternity (67% rated positively or very positively), flexible working hours (67%) childcare vouchers (65%), working families network (65%), onsite childcare (62%) and returnership programmes (60%).
In addition, many parents and carers are flexing their hours to accommodate their childcare needs, working either shorter hours (64%) or earlier or later in the day to make up time (65%).
Later this autumn, BusinessLDN, KPMG and CDA will publish detailed recommendations to improve the current childcare system and boost labour market inclusion.
Looking at the survey findings in more detail:
- 53% of respondents rated their childcare as unaffordable, 29% as affordable, with the remainder undecided/don’t knows;
- 49% of respondents reported getting into debt because of their childcare costs, 26% disagreed, while 25% neither agreed or disagreed.
- Just over a quarter (26%) said the cost and availability of childcare had negatively impacted their career, while 43% said it had positively benefited them, with the remainder (31%) feeling it had not affected their career choices either positively or negatively.
- Among the deciding factors in choosing childcare, respondents rated the following as most important: cost (46%), hours available (43%), distance from home or workplace (37%), quality of provision (36%), range of activities (29%), good quality state provision (24%) and Government funded tax breaks (17%). Respondents selected up to three options.
- 43% said their childcare was accessible, 39% said it was inaccessible, with 18% not having a strong opinion either way.
- 64% said they were or had worked shorter hours versus 14% who hadn’t largely or at all and 22% who neither agreed or disagreed.
- 65% reported working earlier or later versus 12% who hadn’t made changes largely or at all, and 23% who neither agreed or disagreed.