Renfrewshire’s Tackling Poverty Commission has heard how Scotland has the highest childcare costs in the UK – with families forking out thousands each year to cover a part time nursery place.
The stark findings were given by Rob Gowans, from Citizens Advice Bureau (CAB) Scotland, as part of his evidence to the Commission on the impact childcare costs are having on in-work poverty.
Rob said: “We’ve looked into affordability and availability of childcare, as well as issues around school holidays, tax credits, and also zero hours contracts.
“We know that childcare is very expensive. One parent came to us for support after they were unable to start a job they were offered because their local nursery wanted them to pay a £200 joining fee which they simply couldn’t afford. In Scotland 27% of the average household’s income goes on child care costs while the average cost of a part time nursery place in Scotland is £5,000 a year.”
CAB also found that provision in some areas is patchy, with some people having to give up work. While during school holidays – particularly summer – many people cannot afford child care and can find themselves struggling as a result.
Councillor Mike Holmes, Chair of the Commission said: “Many working parents are pushed to the brink by child care costs. This is not only a barrier to employment because many people just can’t afford it, but it’s also one of the spiralling costs of living that’s driving in-work poverty.
“It’s also important that childcare reaches a very high standard because of the valuable role it has to play in a child’s early development.”
The Commission heard there are 1.4 million zero hours contracts in the UK and that in 2012 when the UK Government rolled out its reform of welfare, 85,000 people lost their entitlement to Tax credits with it being cut from their household income as a result.
Councillor Holmes added: “Zero hours contracts are misused by many employers. Some staff can work full time one week, 10 hours the following week, then find themselves with no work the week after. How can a family budget; avoid going into debt; or even plan for childcare and the costs that come with that on that type of contract?”
As part of its final evidence gathering session the Commission also re-visited health, with Linda de Caestecker, Director of Public Health at NHS Greater Glasgow and Clyde bringing ideas to the table around health visitors, family nurse partnerships, health in pregnancy and organisations co-locating – all of which will feed into the Commission’s recommendations.
The Commission also discussed the affordability and cost of transport and the importance of local networks in getting people to and from work and training.
The Commission has now finished gathering evidence. It will meet to finalise its findings and recommendations in late January and will publish its report in March 2015.