Childcare costs and poverty Findings - Scott Corfe, Research Director

sMmaf.rckoe.utk F | o@usmndftahtinioktnank Overview 1 Outline and key findings 2 Spending on childcare 3 Childcare and work 4 Next steps Childcare costs and poverty | July 2022 Social Market Foundation Outline and key findings Childcare costs and poverty | July 2022 Social Market Foundation Our approach • To support the launch of the SMF’s Commission on Childcare, we have undertaken new analysis e. [...] Analysis of women aged 25-35 in 2009/10 Childcare costs and poverty | July 2022 Social Market Foundation The “childcare penalty” appears similar at the bottom and top of the income distribution by 2018/19, though lower earners face more of a penalty in early years of parenthood – a childcare effect? Figure 13: % difference in female wages – those that had first child in 2010/11 or 2011/12, versus. [...] Analysis of women aged 25-35 in 2009/10 Childcare costs and poverty | July 2022 Social Market Foundation Next steps Childcare costs and poverty | July 2022 Social Market Foundation To support the next phase of the project – setting out policy recommendations to reform childcare – the SMF will be gathering evidence from expert stakeholders. [...] Childcare costs and poverty | July 2022 Social Market Foundation Childcare costs and poverty Overview Outline and key findings Our approach Key findings Spending on childcare On average, childcare accounts for about 7% of household income among those paying for it… … rising to 17% for those in the bottom income quintile A third of childcare users in the bottom income quintile are in childcare pove. [...] Childcare and work Half of part-time employed mothers that would want to work more hours said that affordable childcare would help For about a third of mothers out of work with young children, childcare costs are cited as a reason for not working Analysis of the Understanding Society survey Having a child has a significant and sustained impact on female earnings A cumulative income loss of close t.