The Childcare Cliff Edge: A Glimpse into Britain's Tangled Welfare State The UK government's childcare policy has long been contentious, but new research from the Centre for Tax Reform highlights a significant problem that transcends party politics.
The "childcare cliff edge" – where high earning parents must choose between working and losing free childcare entitlement – is set to become more pronounced in coming years.
The £100,000 threshold may seem arbitrary, but it has real world consequences. A recent report found nearly 1,000 families artificially suppressed their earnings in 2022 alone to avoid falling below the threshold.