Thursday, 18 October 2012

Mumpreneurs can stimulate the economy out of recession if the government tackles the UKs childcare challenges.

Being a mum has not stopped me from having a career and an income. However it has not been without its challenges.

I have been running my own business now for 3 years and I am now employing other mums on a flexible part-time basis. The main challenges for me and my team is childcare, cost and availability.
A large number of my working mum friends rely heavily on family, mainly Grandparents, for childcare. However for lots of working mums, like my-self, they do not have that option. I have a supportive husband who would love to help out more however his private sector employer can-not afford to give him flexibility in his working hours, it’s hard-times in business.
So regular child-care is my only option and this is not only hard to find it becomes more complicated  when children are at school.
I have a six year old in Year 2 at school and a three year old in school nursery. Childcare is a mixture of before and afterschool clubs for both, child-minders on the days the clubs are full, nurseries and holiday clubs in the school holidays, it’s a logistical nightmare hard to organise and expensive.
Not enough of any type of childcare provision so you end up juggling your kids around them all which takes its toll on both children and parents. I have been known to try and drop my kids off at the wrong place on the wrong day, I don’t know whether I am coming or going!
The cost is astronomical and for many part-time working women simply not economically viable to return to work. My child care costs average between £6000 and £8000 per year. After tax most part-time working women on the average wage would be paying to go to work!
Becoming a child-minder is too complicated, a friend of mine registered and started the process and shared what she had to do with me. I was horrified at the amount of paperwork, policies and procedures she had to prepare and ensure parents completed.  In my experience most child-minders are looking after children of adults they know. Unlike nurseries there is a clear relationship between the parents and child-minder surely the parents are best placed to assess the person not Ofted!
So it seems simple to me…….There is a demand for childcare by women like me and my team who want to work so we need to sort out the supply.
Step 1. Make it easier for women to become child-minders, lots of mums are looking to earn an income whilst at home with their own children cut the paperwork and inspections. We now have more women working.
Step 2. We now have increased supply which creates competition and reduces the price making it more affordable for more people. A wider income range can afford childcare. We now have more women working.
Step 3. We now have stable supply and demand enabling working mums to consider setting-up their own businesses. We now employ more and more people.
For 5 years now I have worked 3 days a week, trying to strike that magic balance workings mums strive for. Mum, wife and career woman. It’s hard work, it feels like I am doing two full time jobs, but I love it. I feel positive about life, I feel good about myself, I am proud of what I am achieving and my kids are very happy and confident. I want other women to achieve the same self-confidence, independence and security for themselves and their own families. I believe the Government has a role to play.
Here is a section of an article which gives me hope that the government will make the changes necessary to see the full article click here
Christian Guy, Managing Director of the CSJ, said: “Finding suitable and affordable childcare in the UK is difficult and often hinders some of the poorest parents from working. We need to give people the tools to escape poverty – reforming childcare must be a political priority.
“Throwing more money at ballooning subsidies is unlikely to be the best use of public funds, what we need a sensible and thoughtful policy change.
“Helping parents to avoid the cost of childcare altogether – for example, by fostering informal childcare networks, encouraging childminding circles and helping parents to work during school hours – would be hugely beneficial.
“Another challenge facing ministers is to drive down costs so that more parents are better off if they take a job.”
The CSJ calls for a pruning of the red tape covering the provision of childcare. Regulations limiting the number of children a registered childminder can care for should be eased and schools should be given incentives to provide additional supervision of children before and after class, it says.
The CSJ report concludes: "Work is the principal route out of poverty. But extortionate childcare costs are a major barrier in getting people into work and underline why this Government’s welfare reform is so essential. The next phase in this journey must be a more detailed review of high childcare costs.”
The report adds: "Supply side reforms are now crucial to reduce the cost of childcare for both parents and taxpayers particularly urgent in a time of such public and private debt.
"Such reforms would ensure that it is economically worthwhile for more parents entering employment on the national minimum wage to combine work with paying for childcare.
"The Government needs to support parents to achieve the fragile balance of working and raising their child, while controlling the costs for both parents and taxpayers.
"Models of childcare such as extended schools and childminding circles should be encouraged in order to increase the availability and flexibility of childcare provision, without surrendering on quality and outcomes."
Key recommendations of the report include:
- The affordable childcare commission should aim to lower childcare costs to below the breakeven cost of childcare in order to ensure that work always pays for parents that have to combine work with formal childcare.
- The Government should ask childcare providers for core and consistent information on all forms of provision, including costs, pricing and occupancy in order to better understand demand and gaps in provision in local areas.
- The Government should consider a modest relaxation of childcare ratios during peak hours. This would increase the flexibility of provision for parents and increase incomes for providers without putting children at significantly greater risk.
- Schools should be encouraged and incentivised to offer regular childcare and after-school activities on the basis that extended schools offer low-cost options for childcare while also improving educational outcomes for the children who attend.
- Schools should be encouraged and incentivised to provide extended service by communicating the benefits of improved outcomes for the children who attend; and allowing extended schools access to childcare subsidy where their provision supports parents into employment.
- National and local governments must shorten the process of becoming a childminder to encourage parents to do so.
- The Government should encourage childminding circles in order to raise demand and lower costs for out-of-hours care (before 8 am, after 6 pm) organised in conjunction with the breakfast or afterschool club, or with Jobcentre Plus.
- Jobcentre Plus should discuss the option of becoming a child-minder with parents on income support as they approach the point at which their youngest child reaches five years old.

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