As it stands the high cost of childcare means that many women, especially those on low and middle incomes have had to stop working.
IPPR are suggesting that free childcare would mean that many mothers could return to work that would result in millions of pounds being raised in taxes for the government.
The estimated cost of putting free childcare into place would be approximately £6.7bn, an initial outlay that the IPPR believe could be funded by restricting tax relief on pension contributions to the basic rate. Funds could also be raised by putting into place a system of means testing for winter fuel payments, free travel passes and television licences for pensioners.
The cost of childcare has increase 4.8% since last year alone (according to the Daycare Trust), leaving many families feeling the pinch as there wages and living costs remain the same.
IPPR argue that though the initial outlay for doing so would be high, bringing in universal childcare would mean that many mothers could return to the workforce – a move that could significantly boost economic growth.
Study author Jame Plunkett has said that female employment has been an essential factor in improving the living standards for families who are on low to middle incomes in the past generation. He went on to say that now that growth is stalling and there is nothing in line to replace it.
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