Exclusive: Findings are a warning to policymakers that raising subsidies ‘can be costly and ineffective if not carefully designed’, co-author says
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Throwing more money at cheaper childcare fees won’t be enough to help mothers with young children get back to work, new research shows, as lower-income families lose more in benefits and taxes than they gain from working an extra day.
The independent economic research body e61 Institute analysed childcare reforms in 2018 and found that higher subsidies for lower- and middle-income families had no measurable impact on mothers’ participation in the jobs market.
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