Excerpts from the report:
In spring 2011 Save the Children and Daycare Trust surveyed more than 4,000 parents to explore their views on access to childcare and the impact of childcare costs on family incomes and work prospects. This briefing uses findings from the survey to examine how the cost of childcare impacts on parents' employment, family budgets and in turn child poverty.
Key findings
The survey findings suggest that parents living in severe poverty are struggling to access childcare more than other parents, particularly due to the high cost. This is undermining the UK government's laudable aim to make work pay, and thus preventing families living on the lowest incomes from escaping poverty.
1. Cost is a major barrier preventing parents on the lowest incomes from accessing childcare
• Eight out of ten parents living in severe poverty said that cost was a barrier to accessing childcare.
2. The high cost of childcare has a significant impact on most families, but for families in severe poverty the impact is particularly extreme
• Parents in severe poverty have cut back on key essentials, such as food and household bills, simply to pay for childcare.
• Parents in severe poverty have made very difficult financial choices simply to pay for childcare, such as moving home or getting into debt.
3. Difficulties accessing childcare are significantly affecting the ability of parents in severe poverty to work, train or study
• A quarter of the parents in severe poverty who responded had given up work, a third had turned down a job, and a quarter had not been able to take up education or training, all because of difficulties in accessing childcare.
4. The high cost of childcare means that work is not paying for the poorest families
• The majority of parents in severe poverty (58%) said they were no better off working and paying for childcare, compared with just 19% of those with incomes over £30,000.
• A large number (41%) of parents in severe poverty said they would consider giving up work and 25% said they would consider reducing their hours due to the recent cut in the childcare element of Working Tax Credit.