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Spending review sees single parents lose crucial money for childcare
The decision to cut help with childcare costs for parents receiving tax credits - from the current maximum of 80% to 70% of costs - is a heavy blow for working single parents and for those trying to find a way back to the jobs market.
HMRC April 2010 stats show the cut will disproportionately hit working single parents who make up 60% of recipients of the childcare tax credit (300,700 thousand single parents compared to 188,100 couples (488,800 households in total)).
Chief Executive of single parent charity Gingerbread Fiona Weir said:
"This is a bitter blow for working single parents who are already struggling to keep on top of childcare costs and for whom this support is essential. The government says it wants to make work pay but this is a big step backwards for single parents in jobs and for those wanting to get back to the labour market.
“Over the Spending Review period this cut will mean struggling parents will collectively have to find a further £1.325 billion in order to pay the childcare costs that allow them to stay in work, and many may find this too much of a stretch.”
The changes mean a single parent in London who is working part-time at 21 hours a week (25 hrs with travel time) with a 3 year old child in nursery will have to find an additional £505 per year out of their earnings to spend on the childcare costs. (Based on average London childcare costs from Daycare Trust Childcare survey 2010. )
Note to Editors:
Further information from jane ahrends on 020 7428 5416 or 0788 1951138