Will childcare define the next election?

10 March 2023

By Charlotte Alldritt

3 minute read

It feels like the week the world woke up to the question of childcare. In truth, this is an issue that many people – mostly women – have been acutely aware of for years. Now both the main political parties are under pressure to prove their credentials as it looks set to become a core election battle ground with huge implications for economic growth.

At the Centre for Progressive Policy, we’re dedicated to creating an economy in which more people can contribute to and benefit from growth. This is a model for fair, inclusive growth. Access to affordable and appropriate childcare is critical for enabling millions of parents – especially women – to participate in the labour market. As the costs of living rampage and with a housing market predicated on dual income households, the need has never been greater. Latest CPP data shows that women with young children who are prevented from taking a better paid job due to childcare constraints forego an average £12,000 per year in income. Women want and – in many cases – need to work more.

The main political parties in Westminster are waking up to this reality. Last week, Humza Yousaf, frontrunner in the SNP leadership race, recommitted his party’s pledge to extend universal childcare to one- and two-year-olds. Yesterday, Bridget Philipson gave a speech setting out Labour’s stall, and the Chancellor is under pressure from his own side as well as externally to offer something in next week’s Spring Statement. I don’t expect much of an announcement then, but would certainly bet the Conservatives make a manifesto promise on this agenda – potentially expanding access to childcare support for disadvantaged 0 – 2 year olds.

As a rare bit of emerging cross-party consensus, the challenge for voters – like on mayors and place-based devolution – will be in differentiating which side has a more compelling and credible offer to deliver. Labour talk big, but are they willing to put money on the table?

At CPP we’ve argued for extending childcare support from the end of statutory maternity leave, rather than parents having to wait until their children are 2 or 3 years old, depending on family circumstances. We’ve also called for free, universal provision of breakfast and after-school clubs for children through to the end of primary school. We estimate the cost of these two measures to be in the order of £2.9bn. Given latest CPP research shows that the economy loses between £27bn and £38bn per year due to lack of suitable childcare, the fiscal and economic case is strong.

We’re still paying the colossal price of Covid and lockdowns, which – when schools and early years settings were closed – revealed the extent to which our economy rests on available childcare. Unless we fix office hours to align with the school day or provide affordable, appropriate wraparound childcare, we’ll continue to undermine women and underpower the economy. Let the election battle for childcare commence.