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. Doctor with patient for consultation, medical advice or procedure at clinic

    Taken to heart: Inequalities in heart disease in Scotland

    More than 7.6 million people across the UK live with cardiovascular disease (CVD), around twice as many as live with Alzheimer’s disease and cancer combined. 
  2. A beautiful sunset in the Scottish highlands with renewable energy wind turbines far into the horizon

    Skills passports: An essential part of a fair transition

    This month, government will publish its Clean Energy Workforce Strategy. This plan covers two aims. First, filling the growing demand for skills in clean energy industries is essential to keep on track to reach the government’s clean power…
  3. The Bank of England is watched over by a statue of the Duke of Wellington seated on his horse

    Fixing the leak: How to end the £22 billion annual taxpayer losses at the Bank of England

    The Bank of England increased its interest rates over recent years, aimed at reducing inflation. But this has also had an unintended effect on the Bank of England’s massive government bond buying – ‘quantitative easing’ – programme.