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Firms losing staff because of ‘high childcare costs’

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
14/11/2016

More than a quarter of British firms say staff have had to cut their hours due to the high cost of childcare.

A survey by the British Chambers of Commerce (BCC) of 1,600 business leaders found 1 in 10 employees have had to leave their firm for this reason.

It found a third of companies regard the availability of childcare as a key issue in recruiting and retaining staff.

And while nearly 40% of businesses viewed government plans to double free childcare next year as likely to have “a positive impact on their business”, BCC is calling on government to go further, and consider the costs and benefits of a universal childcare entitlement up until school entry.

All children aged 3-4 in Britain currently get 15 hours free early education or childcare a week. From 2017, this is set to double to 30 hours.

Adam Marshall, director general at the British Chambers of Commerce (BCC), said: “Firms across the UK are losing talented staff, often because of the availability and high cost of childcare.

“At a time when economic growth is softening, and skills gaps and recruitment difficulties are hindering businesses, the government should consider the childcare system as part of Britain’s core business infrastructure – in the same way that it thinks of energy, transport, or broadband.”