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10 Jun 2022
by Elizabeth Howlett

Top 10 stories from this week: Cost of childcare stunting women’s earning potential

The cost of childcare is significantly impacting the earning potential of women

Top 10 stories from this week: Cost of childcare stunting women’s earning potential main.jpg


The cost of childcare has been found to be a contributing factor to why women with children earn £70,000 less over the course of a decade, than they would have done if they had remained childless. 

The study, conducted by Social Market Foundation, found this issue was heightened by the cost of childcare, which has left women unable to work as much as they want, reducing their earnings and limiting career progression. It also estimated that on average, families are spending 7% of their income on childcare. 

Areas for employers to consider developing in their benefit strategy to support mothers and working parents revolve around flexibility. Luckily, most organisations have adopted some form of hybrid and/or flexible working model, which will undoubtedly help to keep talented parents in the workplace. However, these arrangements are not sufficient to replace childcare altogether and reduce costs. 

Employers that want to commit to supporting parents could look at partnerships with local nurseries to help employees save money. A nursery partnership – which enables employers to provide the benefits of an on-site nursery without actually having a workplace nursery – can make childcare more accessible, affordable and improve recruitment, retention and productivity. 

For more reward and employee benefits news you might have missed this week, read our top 10 snippets below.

New mothers earn £70,000 less over a decade, think tank finds
People Management Research reveals women with children could see their earnings fall by 10 per cent in 10 years, as experts call for ‘national solution’ to high cost of childcare. Read more

Cycling to work uptake held back by significant obstacles
Workplace Insight A new poll from Direct Line Cycling Insurance claims that commuters are being increasingly discouraged from cycling to work by a number of factors. Read more

City bonuses rising six times faster than wages, TUC says
People Management Experts say there is no justification for ‘obscene’ rewards and call for fairer distribution of bonuses among employees. Read more

Cost of living crisis disproportionately affecting ethnic minorities, research finds
People Management Study reveals a higher number of racially diverse workers are struggling to pay their housing and energy costs compared to white counterparts. Read more

60% of people looking for new jobs now, with cost of living crisis driving this trend
HR News Recruitment agency, Aspire, has expanded on new research from PwC, which suggests that one in five UK workers expect to change jobs in the next 12 months. Read more

Work-life balance more important than pay for two thirds of people
Workplace Insight  New survey by CIPHR suggests that there’s something that employees value more than pay, despite the current economic crisis. Read more

Employee demand for mental health support doubles 
HR Review Employees are experiencing a stress breaking point, with 47 percent of employees having suffered from excessive stress over the last year. Read more

Islamophobia affecting majority of Muslims at work
HR Magazine An overwhelming majority of Muslim employees in the UK are suffering religious abuse at work. Read more

EU Directive demands third of board members are women by 2026
HR Magazine European employers will have to report minimum percentages of women on their boards following an agreement in Brussels by the European Council after a decade of preparation and numerous roadblocks. Read more

Only 8% of UK workers would tell a manager about feeling lonely at work
HR News Research finds that 58% of UK workers said they had felt lonely at work during the last 12 months. Read more


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