tag:blogger.com,1999:blog-1141932539860553199.post137217950506900681..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: Childcare CostsMark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-1141932539860553199.post-38339414434638479112014-03-04T19:58:18.566+00:002014-03-04T19:58:18.566+00:00"I presume they simply mean subsidy."
T..."I presume they simply mean subsidy."<br /><br />They always mean subsidy. There's no point in someone from a fakecharity appearing on TV or radio if they don't ask for more taxpayers' money. Whenever I hear these people on Radio 4, I'm always waiting for them to get to the point of suggesting that the government either give them, or the group they purport to represent, more money. I seldom have to wait long. <br />Mind you I was impressed this morning when, in a discussion about business rates, the man from the pressure group confined himself to a perfectly reasonable request that re-rating be carried out more frequently.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-50774620372698762932014-03-04T19:34:49.175+00:002014-03-04T19:34:49.175+00:00Yes, a simple system like that would suffice. Unfo...Yes, a simple system like that would suffice. Unfortunately we also have a credit that distorts a bit. The reason for the cost is a 3 kids per adult requirement at most LA nurseries, and the costs are half that from 3-6.Kjhttps://www.blogger.com/profile/13530243002915410700noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-27603066486583338672014-03-04T19:15:47.351+00:002014-03-04T19:15:47.351+00:00Kj, that sounds stupid expensive.
In the UK it co...Kj, that sounds stupid expensive.<br /><br />In the UK it costs about £7,000 - £10,000 for a full time place, and we have an excellent system of nursery vouchers which reduces that by about £4,000 a year, in other words, to something "just about affordable".<br /><br />We also have two shit subsidies for childcare called "Working Tax Credits" and "Employer Childcare Vouchers". If we got rid of those and increased the value of the old-fashioned vouchers to £5,000 per child, as well as deregulating again, the problem would sort itself out.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-64078271602007079592014-03-04T19:07:12.355+00:002014-03-04T19:07:12.355+00:00MW: yeah it all depends on the subsidy amount. Her...MW: yeah it all depends on the subsidy amount. Hereabouts nursery places for 1-3 year olds costs govt 20K GBP (at ca 90% of cost), and a minority of working mums rakes in that much in tax revenue.Kjhttps://www.blogger.com/profile/13530243002915410700noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-84991058097910339562014-03-04T18:59:19.138+00:002014-03-04T18:59:19.138+00:00Ah yes, but at present, our tax system is based on...Ah yes, but at present, our tax system is based on taxing earned income, out of which subsidies are funded.<br /><br />So looking at it from the point of view of the government (as a proxy for 'the taxpayer'), if Mum puts kids in a nursery and goes to work and earns (say) £15,000 she's generating (say) £5,000 in tax revenues, so if she gets a £5,000 'subsidy' towards nursery place, that is cost-neutral.<br /><br />The calculation is much more complicated than that, because the wages and profits of the nursery are also taxed etc, so what exactly the break-even subsidy/tax position is for the government can only be guessed at.<br />Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-72790073494545642692014-03-04T13:35:39.267+00:002014-03-04T13:35:39.267+00:00Agreed. Without going full on CI, the best solutio...Agreed. Without going full on CI, the best solution for maximum choice would be liberalisation, combined with increased child benefit and fully transferrable personal deduction.Kjhttps://www.blogger.com/profile/13530243002915410700noreply@blogger.com