Why large companies should subsidise childcare costs

Childcare costs are a big drawback in getting women back to work. They are expensive and there is no flexibility around them. We need companies to support this cost, not only for the benefit of women but for the benefit of companies themselves. With Brexit looming over us, companies need to be reactive to attract and retain valuable staff.

Childcare costs are supported not only by women but by families as a whole, whether this is a single mum, a divorced dad or other. Not only that, but childcare costs are a barrier to economic growth. A family whose wife cannot go back to work, it is a family that cannot consume. A family that can only afford one child as opposed to two or more is also restricting economic growth.

I recently introduced the idea of a Childcare Levy, with an implementation similar to the of the existing Apprenticeship Levy. The latest has had its hiccups but overall companies are happy to support the cost and benefits are starting to show. 

An alternative to the Childcare Levy is to get companies and government to create a pot similar to a pension scheme, where contributions made by employees are matched by the employer up to a certain level and employee can start accessing those funds from the moment that first child is born.

It is time to be creative about childcare costs. We all know these are expensive and are having a negative impact in family creation as well as shareholders returns and overall economic growth.

I want companies to start thinking about this.