Impact of the cost of childcare on parental mobility

This project will investigate the impact of formal childcare costs and availability on parental mobility and the labour market.

Why this project is important

Currently, over a third of parents with young children find it difficult to meet their childcare costs, and only 50% of local authorities report sufficient childcare provision. In addition, 27% of children aged between 0 and 4 are in informal childcare, creating a potentially significant barrier to families moving to find work or change jobs.

The effect of high childcare costs on employment decisions is well understood. However, existing research has not extensively covered potential geographical economic inequality arising from formal childcare costs, such as through increased reliance on informal sources of childcare such as grandparents.

What it will involve

In March 2023, the government announced a significant increase in formal childcare support, with improvements in labour supply being one of major motivations for the decision. To provide policymakers with better guidance and contribute to further development in childcare policies, the research team will:

• Undertake descriptive analysis of existing data to understand how parental mobility is associated with different aspects of childcare.
• Conduct a survey and a choice experiment covering around 4,000 parents to assess the importance of childcare characteristics in migration decisions.

• Compare the economic impact of different childcare policies.

The research will begin with a methodology paper to ensure the analysis is robust and aligns with stakeholder input. A range of data sources will be analysed to examine trends in formal childcare and parental mobility, such as the Department for Education’s Survey of Parents and Survey of Providers and the ONS’ Local Authority to Local Authority migration data. The choice experiment will be based on existing local area and childcare data.

How it will make a difference

Findings will be directly shared with key stakeholders, including policymakers, childcare providers, charities, and academic researchers. The research will be disseminated through policy briefs, academic publications, and stakeholder workshops.