Improvement has been significant but childcare is still patchy, it is appallingly expensive and employers, in the main, fail to pay a fair contribution. In much of Europe, in contrast, bosses meet up to a third of childcare costs.
What is a \”fair contribution\” for an employer to make to childcare costs?
For just as with employers\’ NI or any other part of compensation that isn\’t part of wages, the compensation will come out of the wages. Mandate that employers must cover childcare costs and two things will happen: wages will fall while compensation remains static and there will be an increasing reluctance to employ those who have children that require childcare.
So we come back to the question. What is the \”fair contribution\” that an employer must make to childcare costs? And why should such a contribution, whatever that fair level is, be paid as childcare instead of to the employee who then gets to use it to pay for whatever they want?