Wealthiest families stand to gain almost eightfold advantage from the complete implementation of subsidized childcare hours compared to the least affluent families.

The New Economics Foundation (NEF), an independent charitable think tank, has put forth a proposed childcare system aimed at addressing the current system's complexities and affordability issues. The analysis of this proposed system is now available to read on the NEF website.

According to Tom Pollard, head of social policy at NEF, the government's investment in childcare will fall short of its objectives without more fundamental reform. The proposed system seeks to rectify this by offering 15 hours of universal childcare for all children aged 9 months and above, a significant departure from the current system.

The government's expanded childcare programme, set to be fully rolled out by September, will provide 30 funded hours for children aged 9 months to 4 years old in families where all parents work at least 16 hours per week. However, the NEF's proposed system aims to make childcare more affordable for all families, not just those who meet the work hour criteria.

The current childcare system is criticised for its complexity, which often leaves parents struggling to navigate it. The proposed system by the NEF aims to simplify this, making childcare more accessible for all.

Moreover, the current system is seen to squeeze the budgets of families struggling with the cost of living crisis. The NEF's proposed system includes a cost cap of 5% of family income for additional childcare hours purchased by working families, a move that could significantly reduce the financial burden on many families.

However, the current system also denies full access for children from the poorest households. The NEF's proposed system seeks to address this by ensuring that 15 hours of childcare are universal, regardless of a family's income.

Despite these improvements, childcare will remain unaffordable for many families who are eligible for support, even with the expanded programme. For instance, working families receiving £34,000 would have to spend over 11% of their gross earnings to have one child in full-time childcare.

The proposed system by the New Economics Foundation also aims to be fairer. While only 11% of the poorest households will be eligible for the full expanded hours of the childcare programme, 85% of the richest households will be able to benefit. This disparity is addressed in the proposed system, as it caps the cost of additional childcare hours for working families at 5% of their earnings.

In summary, the proposed childcare system by the New Economics Foundation seeks to simplify the current system, make it more affordable, and ensure it is fairer for all families. The analysis of this proposed system is now available on the NEF website, offering a comprehensive look at how this system could revolutionise childcare in the UK.

Wealthiest families stand to gain almost eightfold advantage from the complete implementation of subsidized childcare hours compared to the least affluent families.