The cost of childcare is driving women out of the workforce

The cost of childcare in the UK has led to a large number of mothers being pushed out of the workforce. According to research conducted by the OECD, the UK places as the third most expensive country for childcare among its members, marginally beaten by Switzerland and New Zealand.

Research from the national statistics and children's charity Coram shows the average cost of a full-time nursery (50 hours a week) for a child under two in Britain is nearly £15,000 a year. Equivalent care from a childminder is nearly £13,000. Coram revealed that it can cost parents 66 per cent of their wages to put a child under two in childcare.

Moreover, three-quarters (72 per cent) of local authorities report that over the last year, some or many of their local childcare providers have increased prices charged to parents.

This is an issue affecting women disproportionately. According to a survey of 27,000 parents conducted by Pregnant Then Screwed, found that 43 per cent of mothers consider leaving their jobs and 40 per cent work fewer hours to attempt to balance increasing childcare costs and work.

Nicole Green, Co-founder of Catch, a communication agency that works with brands that want to fix the future says she herself has seen the difficult struggle mothers dealt with when it came to balancing their work, childcare and household costs.

She said: "100 per cent of the mothers I employ have chosen to, or had to work fewer hours than they would like because of access and cost of childcare." Nicole herself has had to relocate across the UK to be nearer to her family for support.

At Catch, many of the mothers employed have chosen to work as freelance consultants for the flexibility it offers.

"We've designed an incredibly inclusive and flexible work culture to accommodate their needs," Nicole said.

Yet she sees this as a deep-rooted issue that cannot be fixed so simply.

The co-founder added: "Every single one of the mothers in my company has fought her own battles with childcare and no amount of flexibility in their working life can possibly make up for the shortcomings of the childcare system in the UK."

Director of Jobs for Women, Zoe Jones also said her organisation has seen women often struggling between childcare costs and their careers. She also recognises how the pandemic has impacted them.

Jones stated: "The pandemic has exacerbated many challenges working parents face, including childcare costs, as many schools and childcare facilities have been closed or operating at reduced capacity. 232,000 fewer women were employed in October-December 2020 than in January-March 2020, a fall of 1.5 per cent."

Research from the London School of Economics found the government failed to consider gender in its response to the pandemic, with mothers losing work three times the rate of fathers.

More recently, with the cost of living crisis, and increasing inflation impacting countless households, the situation for mothers becoming especially dire. A new survey by Coram Family and Childcare reveals significant challenges facing childcare providers, and the steps they are taking to combat the cost of living crisis.

According to Coram, 72 per cent of the authorised reports over the last year showed that some or many of their local childcare providers have increased prices charged to parents. Nearly 48 per cent of local authorities say that some providers have had to reduce their staffing.

Over half of the local authorities blame the country's failing childcare system on the rising cost of energy.

Amidst this all, the government's response to the issue has, according to critics, been inadequate. In the recent Spring Budget, Chancellor Jeremy Hunt announced a four billion expansion of free childcare for one and two-year-olds in a bid to get parents back to work. The plan will include 30 hours a week for parents with children in that age group and is set to kick in April 2024.

However, concerns have been raised that without an increase in nursery staff and space, any expansion will fail. Campaigns like Pregnant Then Screwed, Netmums and Mumsnet are against the expansion citing that putting pressure on staff and loosening the ratio will not in the long run benefit the parents.

Sharing the same sentiment, Zoe said: "The increase in the ratio of childcare practitioners to children from 1:4 to 1:5 will increase pressure on overworked and poorly paid staff within the childcare sector, and I predict many establishments will close as their running costs will be too high."

She continued, "Women have been discriminated against at work for years, and had the government been more dedicated to supporting women to get back to work to close the gender pay gap sooner, we might not be in this cost of living, childcare cost crisis."

While some mums choose to step out of the workspace, many choose to reduce their course, and some are forced into self-employment and freelancing.

But this is not a viable option for all as it leaves their income, and benefits that come with full-time employment such as pensions, uncertain. This further exacerbates the gender pay, pensions and investment gaps, leaving mothers, on average, worse off than their male counterparts

But what is the solution and how can the government rectify it? The government's new plan for 30 hours of free childcare seems to garner more criticism from prominent organisations and mothers alike than support.

Speaking with Grazia, the CEO of Early Years Alliance raised concerns about the Spring Budget's contribution to childcare.

He told Grazia, the shortfall for the current two, three and four-year-old offer is estimated at around £1.8 billion and the government's additional funding is unlikely to match what providers require.

Adequate investments in the childcare sector that take into consideration both the service users and the providers are needed. The average pay for a childcare worker is £7.42 an hour, below the average pay for female workers at £11.37 and many are taking on extra jobs to sustain themselves.

Nicole believes the government need to provide adequate funding in line with inflation and free nursery for children from six months upwards.

"More broadly, I think we need to reclassify childcare as early years education, ensuring proper pay for those within the industry and a better understanding of the long-term value that it can have on society as a whole," she stated.

Ultimately, the solution is straightforward. The government needs to subsidies childcare and make it a priority.

Without appropriate action, we risk losing women's participation in the labour market - women in the workforce are estimated to bring £48 billion a year to the economy. We risk forcing women to choose between their careers or having children.