A group of influential Conservative MPs have come together to form a pressure group aimed at convincing Chancellor Jeremy Hunt to reduce the high costs of childcare in the upcoming budget. The sector is currently facing a crisis, with Britain ranking as one of the most expensive countries in the world for childcare.
Led by Siobhan Baillie, the MPs have been holding regular meetings to discuss measures that could help cut costs and support parents as they return to work. These proposals include adjusting subsidies and loosening employment regulations. The former Prime Minister, Liz Truss, had planned a major overhaul of regulations to bring costs in line with other countries. Still, these plans were dropped by her successor Rishi Sunak, leaving Conservative MPs concerned about potential backlash from working parents.
Baillie said: “The Chancellor cannot ignore the issue of childcare in the budget. It is a crucial part of the discussion on economic inactivity.” She is being supported by several backbenchers, including Robin Walker, the chair of the education select committee, and Edward Timpson. The group has been meeting with increasing frequency as they look to increase pressure on Hunt.
According to the Organization for Economic Co-operation and Development (OECD), Britain has the third highest childcare costs among developed countries, with only Slovakia and Switzerland ranking higher. A report by the think tank Onward found that over the past five years, costs have risen by an average of 21% across the UK, with families now spending over a quarter of their joint income on childcare, compared to an average of just 9% among OECD countries.
The Chancellor is expected to focus his budget on getting economically inactive individuals back to work. The pressure group of MPs wants to ensure that parents with young children are among those who benefit.
The group is not proposing a re-introduction of the scrapped childcare ratios, but instead, they want Hunt to ease other regulations that they believe could help more people enter the childcare industry and allow parents to access the benefits they are entitled to. Demands include making it easier for parents to claim their tax-free allowance of up to £2,000 per year, of which only 20% of eligible individuals are currently signed up.
Other suggestions include eliminating business rates for private childcare providers, with a National Day Nurseries Association report uncovering that the average nursery paid £13,000 in business rates last year. The Treasury has declined to comment on measures being considered for the budget, but a spokesperson for the Department of Education said: “We understand that families and early years providers across the country are facing financial pressures, and we are exploring options to improve the cost, flexibility, and availability of childcare while ensuring that any plans prioritise improving outcomes for children.”