Summary
- Under Universal Credit, once childcare costs are factored in, lone parents with more than one pre-school child will face significant disincentives to working enough hours to lift themselves out of poverty under Universal Credit. This group could face having to pay to go to work.
- Lone parents with only one pre-school child could face losing a significant proportion of any extra money that they earn. This could act as a substantial barrier for families looking to work their way out of poverty.
- Barnardo's believes that increasing the proportion of childcare costs covered under Universal credit to 80 per cent is essential. This would support the government's commitment on making work pay, and help give families a viable way to work themselves out of poverty.
- The government should also undertake a feasibility study on how to move towards and extension of the free early years entitlement from 15 hours to 20 hours, or beyond, for disadvantaged children. This would have the twin outcome of supporting employment for parents and helping the life chances of disadvantaged children, something strongly emphasised in it child poverty strategy. In addition if would help alleviate the problems of a lack of funding directed at disadvantaged children aged three and four previously outlined by Barnardo's.
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