Prime Minister David Cameron has found interesting facts about labour productivity. He vowed to double the amount of free childcare in Britain so that both mother and father can continue their jobs. Economists are finding ways to create more jobs.
After winning the election again, Cameron mentioned his pledge for childcare, but it comes with additional effect.
Sir Christopher Pissarides, a Nobel laureate economist at the London School of Economics, backed the idea. He claims counties with lesser provision of daytime childcare provision leads one partner to stop working because the cost of childcare is so high, working parents can’t afford to pay and no childcare worker is engaged due to the cost of discouragement.
Pissarides added that subsidy in childcare will increase economic effect. In that case, both parents will continue working and the childcare worker will also add to the labour force. This way, all of them pay taxes and will see economic growth in the country.
In economics, labour productivity plays an important role in overall GDP growth. A nation prospers if job productivity is high.
During election campaign, the Labour Party also promised to increase the amount of childcare provision time to 25 hours plus some additional benefits.
Currently, Britain offers only 15 hours free childcare a week, which will now be amplified to 30 hours, double what was being provided earlier. Cameron said he will double it to 30.
Neil Leitch, the chief executive of the Pre-school Learning Alliance, raised concerns about the financial involvement in the implementation.
He said, “Although in theory any steps taken to improve the availability of childcare are positive, we would seriously question how feasible this pledge is in practice.
“At the moment, government funding does not cover the cost of delivering 15 hours of childcare for three- and four-year olds, and so it has been left to providers and parents to make up the shortfall.
“It is difficult to see, therefore, how plans to double the current offer without addressing this historic underfunding can be implemented without leading to even higher childcare costs, or risking the sustainability of the sector altogether.”