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. Forging ahead: Deciding the direction of IPPR's Migration Policy Unit

    In our last blog post for the Migration Policy Unit we shared our new way of working as we endeavour to be inclusive and transparent in our policymaking process. In this blog we set out what our first and flagship project is for the policy…

  2. Who gets a good deal? Revealing public attitudes to transport in Great Britain

    Transport isn’t working. That’s the message from the British public. This is especially true if you’re on a low income, disabled or living in the countryside. The cost of living crisis has exposed the shortcomings of our transport system,…

  3. Bhargav Srinivasa Desikan on TalkTV discussing AI

    IPPR's Bhargav Srinivasa Desikan on TalkTV discussing his new report on the impact of generative AI on the UK labour market.