Overregulation and subsidies have broken childcare

Christopher Snowdon writes in CapX

IEA Head of Lifestyle Economics Christopher Snowdon has written in CapX criticising plans to increase state subsidies for childcare.

Christopher wrote:

“The obvious question is why can’t we be more like Germany and Sweden. Why is childcare in Britain so incredibly expensive and how can we make it more affordable? Are the staff highly paid? Not particularly. Do nurseries make massive profits? Not really. Why, then, is this market so inefficient?

“Politicians refuse to ask these questions because the answer would require too much self-reflection. They have broken the childcare market with subsidies, over-regulation and feel-good policies over a period of many years. Three of the biggest problems, as my colleagues Ryan Bourne and Len Shackleton have pointed out, are the unnecessary qualifications childminders are required to have, Ofsted being in charge of micro-managing the curriculum, and nurseries being forced to employ more staff than they need.”

The full piece can be read here.