The Centre for Social Justice and Save the Children study found that 57 per cent of low-income parents said they would be put off working or working additional hours because of the associated costs of childcare.
The study points to previous research findings that show early years education is associated with better outcomes and calls for government to provide more childcare support to low-income parents through the new Universal Credit system. Currently 85 per cent of childcare costs are covered - but the study calls for this to be increased to 100 per cent.
"Our modelling suggests this would have a substantial impact on take-home pay for low-income families, and therefore help to mitigate the high marginal costs they face by returning to work or increasing hours," the study states.
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