Parents in the UK are still paying some of the highest childcare costs in the developed world despite the Government’s expansion of funded childcare.
To bring down costs, and help higher earners avoid having childcare benefits taken away, a new report has urged ministers to replace the current system of funded childcare hours with £7,000 childcare vouchers for all families, regardless of income.
The think tank Policy Exchange argues the move would create a fairer system and remove the “cliff edge” that can leave some parents worse off after receiving a pay rise.
The current scheme has been criticised for offering “free childcare” when many eligible parents still face eyewatering nursery bills.
Although Government subsidies have brought down costs in England, parents are still likely to spend more of their wages on childcare than families in comparable countries such as Germany and France.
