CPS Head of Economic Research Adam Memon responded to the question " " in City A.M. Conservative MP Sam Gyimah took the opposing view, June 2 2015.
"Almost uniquely among developed nations, the UK suffers from both high private childcare costs for families and high public costs – the burden of which falls on taxpayers. While there is a role for targeted state expenditure, especially for children from the poorest backgrounds, the government should look at broader reform of the sector if it is really going to tackle the triple challenge of affordability, access and quality.
The childcare sector suffers from an elevated cost base, but has poorly paid staff and so does not attract as many higher qualified staff as other sectors. At the same time, barely 30 per cent of providers make a profit or are in surplus. This is at least in part because of the excessively burdensome regulatory framework in areas such as staff-to-child ratios.
Regulatory reform, making it easier to deliver childcare in schools, and simplifying the existing funding streams are therefore necessary to raise performance and cut costs."
To read the full debate, visit the City A.M. website.