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By Rachel Lawler

A new report from the Centre for Progressive Policy claims that the high cost of early years fees is costing the UK economy £27 billion – or 1% of GDP – in lost earnings.

The thinktank surveyed 2,545 mothers of children aged 10 and under about their early years and childcare needs.

More than half (54%) of survey respondents said that they had struggled to find “suitable childcare” since becoming a parent. 27% said that they work more hours if they could find suitable childcare.

Holding back workers
The survey also found that more than a third (34%) of mothers had not applied for a different job due to a lack of childcare and 31% said that this has prevented them from getting a promotion or similar job progression.

Based on these results, the CPP estimates that 540,000 mothers in the UK have been prevented from entering paid work due to a lack of suitable childcare, 880,000 have reduced their hours at work and 470,000 have quit their jobs as a result.

Proposed reforms
The most popular suggested reforms for the early years sector were extending the 30 hours offer to parents of younger children, and extending funded provision into school holidays and increasing the affordability and availability of after school clubs.

Most parents surveyed (82%) said that staff-to-child ratios should stay as they are or that there should be fewer children per early years professional.

“Severe underfunding"
Commenting, Neil Leitch, CEO of the ��������, said: “The fact that the CPP’s research shows that the high cost of early education and childcare is holding back the economy comes as little surprise.  

“The early years is a sector which, year after year, has suffered from severe underfunding and continually falls to the bottom of the government’s priority list. �������� across the country are doing their best to provide accessible, high-quality and affordable care and education – but the fact is that current levels of sector funding don’t go anywhere near far enough. As a result, settings are left with no choice but to increase fees just to stay afloat.  

“It is little wonder, therefore, that so many parents, and particularly mothers, are being priced out of the workforce – and with cost pressures on nurseries, pre-school and childminding settings continuing to rise, the situation is only going to get worse, unless ministers take urgent action. 

"Investment in the early years is an investment in the economy. The sooner the government recognises this, the better it will be for the providers, families and society as a whole.” 

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