Childcare support and the hours trap by charity Gingerbread and think tank the Resolution Foundation estimates that single parents on the minimum wage will lose 94p out of every pound they earn over 24 hours a week due to the high cost of childcare.
The report adds that the government will fail its own test of "making work pay" when the universal credit is launched in 2013.
Gingerbread chief executive Fiona Weir said: "Prime Minister David Cameron’s high profile pledge to single parents to make work pay will be broken unless the Treasury can find extra funding for childcare."
The research also looked at the earnings of couples and found that a second earner in a couple with two children on the living wage will keep only 9p out of every pound earned over 20 hours a week. If they work more than 30 hours a week they will take home no extra cash at all.
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