The government is making its biggest ever investment into early years by doubling the amount invested to over £8 billion next year, helping working parents back into work and boosting household finances.
From September 2025, eligible working parents will be able to access 30 hours of free childcare for children from 9 months old up to school age, exceeding the current 15-hour entitlement for 2-year-olds. Working families utilising the full 30 hours a week free childcare could save an average of £7,500 when compared to paying for childcare themselves.
Under the current system, childcare accessibility and affordability prevents many parents from going back to work, and this particularly affects women. This investment will undoubtedly offer working mothers more affordable childcare options which could lead to alternative career choices with higher paid roles, therefore reducing the gender pay gap and increasing labour productivity.
PwC’s Women in Work (WiW) Index measures progress towards gender equality in the workplace. The latest results found that increased female workforce participation since 2011 has added a significant £6.2 billion to the UK economy annually. However, the UK has dropped to 18th out of 33 OECD countries, the lowest it has been ranked in over a decade. A widening gender pay gap and a lower full-time female workforce have contributed to this decline.
Countries such as Sweden, Germany and France have already applied more affordable childcare models and have seen economic benefits from a higher female workforce and stronger GDP growth.
Free childcare is just one of the drivers the government is employing to help tackle the gender pay gap. The Employment Rights Bill, currently being debated in the House of Lords, will strengthen a number of family-friendly entitlements including:
- Parental and paternity leave: No longer any qualifying service required to take unpaid parental leave or paternity leave.
- Protection for those who are pregnant, on maternity leave or have recently returned from it: dismissal for any reason in the period up to six months after maternity leave will be unlawful except in specific circumstances.
- Flexible working: Day-1 right and employers will only be able to refuse a request on one of the ‘specific grounds’ and if it is reasonable to do so.
If you have any queries in relation to any of the above changes and how this will affect your organisation, get in touch on 01942 727200 and speak to a member of the team for a no obligation chat or email enquiries@employeemanagement.co.uk