As part of changes to the benefits system and the introduction of universal credit, the Government has announced that it is rethinking the way in which government provides support for childcare for working parents but has not yet settled on a financing mechanism. Options include: providing support for childcare through a voucher or discount system, rather than as part of the Universal Credit award; or recognising childcare through an additional earnings disregard rather than an additional payment. As part of a wider project on the role of childcare in supporting the living standards of low-to-middle earners, the Resolution Foundation hosted a seminar to discuss the financing of childcare in order to inform future modelling and analysis of the impacts of different funding options on parents’ working patterns and on the sustainability of childcare providers.
