Should childcare costs be deductible against tax for working mothers?
As working mothers become more and more common in our generation the need for childcare has increased which in turn has brought up the price meaning many working mothers find it hard to afford their childcare costs. "ÃÂ£11,000 per year for under two's in 2014"-BBC news 2013, this would mean a huge ÃÂ£211.5 a week but the average disposable income per week is only ÃÂ£170. This is truly shocking, it shows the inequality and shows that the average household who has two working parents would still have to spend more then half their disposable income to afford childcare let along high quality childcare.
One of the benefits to the economy of the government doing this is it would mean that less of the parents disposable income would have to be put into the childcare costs meaning they would have more free disposable income which they can circulate back into the economy.
This would cause consumption to go up which is a factor of aggregate demand. This in turn could mean growth for the country. However if childcare costs are going down it means that the demand for childcare will go up and childcare industries could take advantage of the government scheme and just raise their prices to have a larger total revenue, this would make the whole scheme irrelevant a huge loss of money for the government.
"18% of parents with children under two, the main carer had to stay at home because they could not afford childcare"-News 2008 this a massive amount of unused resources that could seriously boost our productivity as a country and cause growth in the economy. its said four in five have children so 18 percent of that would be 9,231,220 people that could...