Making the case for universal childcare

Article

This paper makes the economic case for universal childcare for preschool-aged children. High-quality early years provision delivers a net financial return to the Treasury as well as delivering better outcomes for children, families and society. We therefore argue that the provision of universal childcare should be a strategic priority for public service and welfare reform in the UK.

On the basis of new cost-benefit analysis, we show that universal childcare pays a return to the government of £20,050 (over four years) in terms of tax revenue minus the cost of childcare for every woman who returns to full-time employment after one year of maternity leave. Universal provision can also enable families to better balance work and caring responsibilities and, in so doing, help to promote higher employment rates and reduce gender inequalities. Universal early years provision is a key foundation of policy frameworks for achieving social justice more widely.

Related items

  1. Must try harder: do the Holyrood 2026 manifestos meet our tests?

  2. An energy smart meter sits on a countertop. It reads electricity: £61.71, gas: £148

    Flex factor: How government can keep network costs on bills down

    Government must strike a better balance between bringing down energy bills now and building a system fit for the future.

  3. Acceleration is not a strategy: A framework for directing AI towards public value before it's too late

    The politics of artificial intelligence is set to drastically change in 2026 as recent technical breakthroughs get implemented across the economy.