A new report by the IPPR think tank has revealed a ‘nightmare’ childcare system that means tens of thousands of parents on low incomes face having to pay to return to work.
Tens of thousands of parents on low incomes face having to pay to return to work, as childcare costs and the universal credit taper, alongside income taxes can create an ‘effective marginal tax rate’ of over 100 per cent, a new report by the IPPR think tank has revealed.
Published today, the report, Towards a childcare guarantee found that the ‘complex and incomplete patchwork’ of childcare entitlements, benefits and allowances for working parents in England leave many struggling in the face of spiralling childcare bills – with costs often outstripping potential earnings, especially for those receiving universal credit..
