Why Large Companies Should Subsidise Childcare Costs
Updated: Feb 7, 2019
The cost of childcare is a massive drawback, especially for new mothers. Childcare in the UK is not only expensive, but lack flexibility too. It is vital that companies and employers help to support the cost, not only for women’s sake, but for the benefit of their economic growth. With Brexit looming over us, companies need to be reactive in order to attract and retain valuable staff.
Childcare costs put a massive strain on families, whether you’re a single mother and father, or not. It is a tremendous barrier for families all over the country. Unfortunately, even in 2019, women are expected to take care of the childcare, particularly in the early stages. A mother who can’t go back to work, is a family that cannot consume.
I recently introduced the idea of Childcare Levy, and my goal to have an implementation similar to the existing Apprenticeship Levy. Although, the latter has had hiccups in the past, companies seem to be happy in supporting the cost, and benefits are definitely beginning to show.
An alternative to the Childcare Levy is to get companies and government to create a pot similar to a pension scheme. Contributions made by employees will be matched by the employer up to a certain level and the employee can then start accessing those funds once their child is born.
It is time to be creative about childcare costs. We all know the cost of childcare impacts families, as well as shareholders returns and overall economic growth.
Our aim is to get companies and employers thinking all of this.