The financial conundrum

The Government clearly does not have unlimited funds and it should balance expenditure and tax receipts responsibly.

When devising Tax-Fee Childcare, the Coalition GCovernment had not considered the broader benefits to the Government and to the economy through supporting parents into the workplace and helping them to stay there.

A report published by the Joseph Rowntree Foundation in December 2014 explored the gains to the Government and to local economies of reducing worklessness and low pay.

Every time an out-of-work claimant gets into work the Government saves almost £6,900 per annum, with the local economy benefiting by more than £14,000 per annum.

Every time someone moves into work, they increase UK Plc’s economic output by more than £13,000.

– Joseph Rowntree Foundation

The benefits to Government do not just come from increased taxation, but reduced expenditure on out-of-work benefits.

It is quite clear that the more we can do to help parents stay in work, the more we all benefit.