HEARTWARMING stuff: Gordon Brown likes to discharge his childcare duties by bringing little John into his Commons office, where the wee lad whiles away his time playing with his train set. Like father, like son. Brown Snr too has his own cherished train set, the British economy, with which he never tires of tinkering.
It seems a shame, then, that in his eagerness to keep things on track, Daddy Gordon has overlooked one Very Important Engine: the working parent. According to a report by the Daycare Trust, childcare costs have risen significantly above inflation in the past year. And since 2000, the cost in England has gone up a whopping 27 per cent.
It’s inevitable, really. Given the astronomical price of living in Britain, it’s a rare household that doesn’t rely on two incomes to pay the mortgage. People need good childcare, and given the lack of provision in Britain’s workplaces, a private nursery or childminder is often the only option.
But if part of the cost of childcare can be put down to simple supply and demand, much of it is a result of the frankly insane tax obligations facing those who need it. A half-decent childminder may cost around £250 a week — but that’s net. In addition her employer has to pay tax, national insurance and an employer’s tax. That’s three extra taxes, out of an already taxed income. Working mothers — or fathers — are effectively being taxed four times. Just for the privilege of being productive members of society.
It’s a uniquely unfair situation. If I were to employ a researcher, that person’s salary would be tax-deductible. Why is the same not true of childcare providers?
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Worse still, what often happens is that, faced with these extra costs, many parents simply pay their carers cash in hand. This neither benefits the Exchequer nor the carer, who ends up without proper health or pension provision.
What needs to happen is this: sensible tax breaks for all working parents, not just the poorest. Mr Brown would point to the existence of childcare vouchers; but like all Brown’s tax gimmicks they require a degree in accountancy to fathom. Tax relief would be so much simpler. But mention tax breaks for childcare in the vicinity of a politician (from any party) and they go a distinctly funny colour. The perception is that nannies are the preserve of the rich. To which I say: if only.