You are here: Home - Retirement - Retirement planning - News -

Four in 10 mums would work more if childcare was cheaper

0
Written by:
13/05/2019
Nearly four in 10 part-time working women would choose to increase their hours if childcare was more affordable, new research has revealed.

A survey of 2,000 mothers across the UK found that after having children nearly half (44%) reduced their hours, around a third left work altogether, and more than one in five returned to work in a lower grade or lower paid role.

Of those who reduced their hours after having children, more than a third (36%) said it made more financial sense to work part-time than pay for childcare, while almost a quarter (23%) couldn’t afford suitable childcare.

The People’s Pension, a not-for-profit provider which commissioned the research, said that childcare costs are widening the gender pensions gap, with the average female pensioner £7,000 a year poorer than her male equivalent.

What’s more, childcare in the UK is more expensive than anywhere else in Europe.

Analysis by The People’s Pension suggests that for a woman in London who earns the median full-time income, with a child under two, 60% of her after-tax earnings will go towards childcare and commuting, reducing her take-home pay to £9,700 per year or a little over £800 per calendar month.

Outside of London the numbers aren’t much better, with a woman on the median full-time salary paying 44% of after-tax income in childcare costs, leaving her with around £13,000 a year to live on.

Gregg McClymont, director of policy at The People’s Pension and former shadow pensions minister, said: “Of course, many women choose to reduce their working hours or leave their job because they want to spend more time with their kids, but our research is clear – the cost and availability of childcare is a key factor for many women.

“If we’re going to tackle pensions inequality, not only are changes to auto-enrolment required but better provision of affordable childcare is a must to enable those mums that want to keep working or work more hours, to be able to.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
How to avoid slashing £7k off your pension in one year

Taking a break from paying into your pension is an easy way to boost your income, but it could cost...

Close