London business group says clarifying funding for providers could deliver £11bn economic prize by freeing more adults to work
Graham Watson's insight:
Another pre-Budget piece this time encouraging the Chancellor to focus on fixing a 'broken' childcare system. However, why is childcare so important?
In the first place, the greatest returns to education are in the early years sector, and this alone might justify the expenditure. However, additionally, better quality childcare would increase female participation in the labour force and boost the size of the working population, enhancing an economy's productive capacity and making the achievement of a number of macroeconomic objectives more likely.
Exclusive: Chancellor will promise to provide extra 30 hours a week to parents of one- and two-year olds
Graham Watson's insight:
Another scheduled 'dripfeed' on the Budget with the announcement that the Chancellor is going to increase funding for childcare for 1 and 2 year-olds in the hope encouraging women to re-enter the albour force sooner.
The government are both trying to match Labour's commitment in this area and boost growth. The problem might be that in much of the South East, the commitment from the government to pay £6.66 per hour for such care comes nowhere near meeting the £10 per hour cost of supplying such care.
Highest employment figures on record driven by older people who won’t – or can’t – retire
Graham Watson's insight:
A clever little insight into record employment figures - one of the things that's driving them is the number of retirees still working, most notably among women.
Now, is this the sort of thing that we'd want to encourage? Clearly some people want to carry on working - and why not? However, it would be interesting to know what proportion of them can't afford to retire.
Eligible under-5s will get 30 hours free care from September 2025, but some fear it is not deliverable.
Graham Watson's insight:
A key part of the government is the expansion of free childcare in the hope of increasing female participation in the labour force. However, whilst welcome, there are some who think that the policy is undeliverable.
In the first instance, although announced today, it will be gradually rolled out from next April. Additionally, childcare providers are of the view that the amount offered by the government has, thus far, been too small and that they either can't afford to offer free childcare or are then forced to charge parents more to cover their costs.
A cost of childcare crisis is forcing parents – mostly mothers – out of the workplace. Now we’re taking the fight to the streets, says Labour MP Stella Creasy
Graham Watson's insight:
Stella Creasy writes in the Guardian about the need to invest in childcare provision if we are to maximise our productive capacity. Investing in childcare has the capacity to increase female participation in the labour force, boosting growth.
More female-run businesses could give the UK economy a £250bn boost, a new report says.
Graham Watson's insight:
The issue of increasing female participation is often seen as exclusively something to do with developing economies, but, as this article proves, it also affects developed economies.
A government-commissioned review has discovered that there's a 'shortfall' of female entrepreneurs and that were this to be 'tapped' it could significantly increase GDP.
You might think about it in terms of a PPF - is the UK economy currently producing on its PPF or inside it? And, if the latter, what does this mean? There's certainly an opportunity cost of lost output.
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