Today’s newly published research from the London School of Economics and University of Essex puts beyond all doubt the fact that, under this Tory-led government, we certainly have not all been in it together in the last four years.
Most worrying, though, are the researchers’ findings that families and children have lost the most as a result of this government’s tax and benefit decisions since 2010. It confirms what we have long feared, that families and children have been hardest hit by this government.
We know, for example, from our own analysis of figures from the independent Institute for Fiscal Studies and the House of Commons Library, that a family where both parents are in work will be over £2,000 a year worse off by the time of the next general election. That is even including the government’s much-touted personal allowance increases.
And, while parents have lost thousands in vital support for their families, they are also facing a childcare crunch with childcare prices having risen five times faster than pay since 2010. As parents have struggled to balance work and family through the cost-of-living crisis, the government has been nowhere to be seen. Its ‘tax-free childcare’ plans go nowhere near far enough to make up for the thousands of pounds parents have lost, and no help will arrive until after the next election.
That is why today’s vote on Labour’s plans for 25 hours of free childcare for working parents of three- and-four-year-olds, paid for by increasing the bank levy to raise £800m a year, is so important.
Not only will it be worth over £1,500 a year to more than half a million children, but research has proven that expanding free childcare provision – as opposed to covering a proportion of parents’ costs – is far more valuable to parents. Indeed, a survey from Mumsnet and the Resolution Foundation earlier this year found that the majority of mums favoured our plan – increasing the free entitlement – to help them to either get back in to work or take on more hours.
No wonder, when the overriding concern with the government’s childcare plans from experts is that it will potentially be overly complex and burdensome for parents – the last thing busy families need. And – as we exposed over the weekend – almost 10 per cent of eligible parents could be excluded from the coalition’s proposals, simply because they do not have access to the internet.
Ministers clearly need to urgently fix this, but it also highlights the fact that extending the free entitlement for three- and-four-year-olds from 15 to 25 hours per week – which would be in addition to the government’s top-up payments – would be a simple and effective way of helping thousands of working parents struggling with childcare costs. The Department for Education’s own figures show that parents of three and four year olds use 25 hours of childcare on average every week, showing just how valuable this support would be.
That is why, today, I will be urging members of all parties to back our childcare plans in addition to the government’s. After four years of no help from the coalition, our plans would make sure working parents get the support they badly need now.
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Catherine McKinnell MP is shadow economic secretary to the Treasury. She tweets @CatMcKinnellMP
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