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Families on National Living Wage crippled by childcare costs

Families with working parents on the National Living Wage do not enjoy a basic quality of life because of high childcare costs, a charity has warned.

The findings, published by the Joseph Rowntree Foundation, state that couples working full time on the living wage of £7.20 an hour, do not reach the minimum standard if they are paying for full-time childcare.

The organisation is urging the Government to undertake a ‘radical reform’ of the childcare system, to lighten the burden on lower paid families for whom childcare is among the ‘biggest barriers to reaching a decent living standard in modern Britain’.

The shortfall exists despite the fact some necessities such as food and fuel becoming cheaper in the past two years, according to the findings from the foundation’s Minimum Income Standard research, carried out by the Centre for Research in Social Policy at Loughborough University.

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