CBI responds to new CenTax report on childcare cliff edges

Alice Jeffries, CBI Head of Tax Policy, said:

“This new report reflects what employers tell us every day: that high earning, often highly productive, working age parents in England face a sharp cliff edge in childcare support. That leaves families with a perverse choice: keep working and risk taking home less or cut hours and refuse promotions or bonuses to keep support in place.

“The impact of this choice is felt mostly by mothers. Women whose partners earn over £100,000 are 50% more likely to leave the workforce after losing childcare support than women whose partners earn below £100,000.

“Centax’s data shows how this impact will escalate as more working age parents are dragged towards the cliff. Addressing the impacts should be an immediate priority for government, before this becomes a bigger problem down the road.”