Kristian Niemietz writes for City AM
So if high levels of public spending were the solution, the UK would be a beacon of family-friendliness. But according to a report by the Resolution Foundation in 2012, a family bringing in £53,924 a year would have to devote 40 per cent of its disposable income, after housing costs, to put two children under five in full-time childcare. OECD figures show British childcare is some of the most expensive in the world.
The problem is not a lack of demand-side subsidies, but an excess of supply-side regulation. This is why education minister Elizabeth Truss’s announcement yesterday that the government will relax restrictions (including allowing each childminder to look after more children) is a step in the right direction – albeit a timid one.
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