The claim: The cost of childcare inside the UK will be the highest inside the planet.
Reality Check verdict: Yes, according to the OECD, although only when the cost of childcare will be applied to a specific demographic – in This specific case, a relatively well-off couple.
The claim in which the UK has the highest childcare costs inside the planet was made by campaigner Joeli Brearley.
Ms Brearley was referencing a study carried out by an international economic body, the OECD, which provides a snapshot of childcare costs among its 35 members.
One important thing to note will be in which even though the OECD refers to the United Kingdom, its study only looks at childcare costs in England.
in which’s because the different nations have different childcare policies as well as the OECD has not produced separate findings for Scotland, Wales as well as Northern Ireland.
in which aside, what does the data reveal?
The graph shows what the item would likely cost to send two children (aged two as well as three) to a “typical” childcare centre (or nursery) for at least 40 hours each week.
the item assumes both parents are in full-time employment, where one parent earns an average wage as well as the second parent earns 67% of average earnings.
The study also takes into account any financial support provided by governments, such as child benefit, to help towards childcare costs.
On This specific measure, the UK (England) will be clearly way out in front with the net cost of childcare working out at 55% of average earnings.
This specific will be 15 percentage points higher than brand new Zealand, the next most expensive country.
although before drawing any firm conclusions, there are some important points to consider.
Firstly, the data needs to be understood inside the context of who will be affected.
In This specific example – which the claim will be based on – we’re looking at a relatively well-off couple.
Parents on lower incomes in England may be eligible for additional support, which will reduce their childcare costs.
Mike Brewer, an economics professor via the University of Essex, says in which the childcare element of the working tax credit (which will be being replaced by universal credit) will be heavily means-tested as well as “very generous to low-paid families” relative to different countries.
Under the childcare element of universal credit, parents inside the UK can receive up to 85% of childcare costs.
So with in which in mind, what happens if the same analysis will be carried out although This specific time the item’s applied to 1 parent earning half the average wage?
When taking This specific particular snapshot, England falls via being the most expensive OECD country for childcare down to eighth.
As Prof Brewer observes: “The results in England depend heavily on what sort of family you have in mind, especially when the item comes to their earnings, given in which we means-test some support.”
There are some different important caveats to consider.
For one, the study only looks at nursery as a childcare option as well as not different forms, like childminders or nannies.
inside the UK, nurseries tend to be viewed as a premium product as well as more expensive than childminders.
Furthermore, the data was compiled back in 2015 as well as doesn’t reflect recent adjustments in childcare costs or brand new government policy.
Since September, most working parents in England have been entitled to receive 30 hours of free childcare a week for three as well as four-year-olds.
The Department for Education says in which 202,783 children in England benefited via the policy as well as in which families could save £5,000 per year on childcare costs.
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