Mid-term review disappoints sector awaiting Childcare Commission results

The long-awaited results of the Childcare Commission were widely rumored to be contained in the review. Professionals had been anticipating announcements on deregulation in the childminding sector and a tax break for families to help pay for care.

But despite including a chapter on families and children, the review only confirmed the government’s intention to “make the difficult task of parenting that little bit easier by providing support, for example with childcare”.

Denise Burke, director of United for All Ages and the Good Care Guide, said she was “very disappointed and exasperated” by the lack of detail on early years policy in the report.

“Despite assurances that the coalition government wants to help with the cost of childcare, today’s mid-term review offered no solutions,” she said.
 
“At a time when many families are losing child benefit we need real do-able solutions to tackle the childcare funding crisis and families will feel very let down by government today.”

Burke said she expected details of the government's response to the childcare commission to be announced at the end of January, but ministers are yet to confirm the exact timing.

Ryan Shorthouse, researcher at the think-tank the Social Market Foundation, said the changes expected to be announced by government as part of the Childcare Commission will do little to deliver affordable, quality childcare for families.

“Tinkering around the edges by increasing the allowance by a few hours, having a tax break or playing around with staff-to-child ratios will help a little, but it won’t help enough to make a real difference,” said Shorthouse.

He said that the suggested childcare tax break would only benefit higher-income families and leave low-income or out-of-work parents and carers worse off.

Shorthouse argued that the government should adopt a system of loans for parents, in a similar model to higher education funding, to help them spread childcare costs over a number of years at no cost to the tax payer.

“This is the most credible route to improving the affordability of childcare,” he said. “I’m disappointed there’s been no big announcement on childcare and I hope the government will look at our model and implement that.”

Speaking ahead of the review’s publication, Prime Minister David Cameron said: “There will be new investment to provide help to working families to cut the cost of childcare.”