The rise in female unemployment has without doubt been been fuelled by cuts to childcare tax credits. An analysis of employment figures by the Institute of Public Policy Research found that there are now 42,000 more women unemployed than a year ago.
Just over a million women are without a job and 268,000 of them gave been out of work for more than 12 months, a rise of 15,000 since last year.
The IPPR says that the reduction to the amount that parents on low-to middle-incomes can claim for the childcare costs through working tax credit from 80 per cent to 70 per cent, means that for some women the cost of childcare outweighs the financial benefit of working.
This study suggests that government policy is not only failing every woman who wants to work, but also failing the nursery sector by not supporting these women with policies that will ease the financial burden of childcare. Yes, free entitlement is a great initiative and will undoubtedly support many children by intervening early in their lives. However, it has been to the detriment of other sources of financial support – cuts to childcare tax credits mean that for some women, work no longer pays and they are better off staying at home.’
The IPPR wants the Government to ensure that everyone who has been out of work for a year is guaranteed a job earning the minimum wage and is calling for universal childcare to parents to encourage full employment.
