Chancellor urged to fix £100k childcare ‘cliff edge’ that prompts parents to cut work

The UK government is facing pressure to address a "cliff edge" in childcare benefits that causes some parents to reduce their work hours or stop working altogether. This issue arises when families with one parent earning above £100,000 lose their entitlement to 30 hours of taxpayer-funded childcare per week. The problem is significant because it can affect the ability of higher-paid employees to balance work and family responsibilities.

Why it matters

The £100,000 childcare 'cliff edge' is prompting parents to cut work hours or stop working to avoid losing entitlement. This could have a negative impact on the UK economy, but the effect is likely to be limited.

Market impact

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