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. A person sits at a desk in front of a laptop. A semi-transparent screen shows a digital AI agent

    Strike while AI is hot: Rebuilding worker power for the age of AI

    How worker power should be reanimated in the face of AI-driven labour market shocks.
  2. The exterior of the Ministry of Defence building

    The Europe agenda: Defence and security

    In this period of geopolitical chaos, greater defence and security integration offer a fruitful way for the UK to deepen its relationship with Europe.
  3. Rear view of unrecognizable people walking together on the street

    A tough hand: Why rising youth inactivity demands urgent action

    On Thursday, new data will likely show the number of young people who will be out of education, employment or training (NEET) will surpass 1 million for the first time since 2013.