The Confederation of British Industry (CBI) said the government urgently needed to announce extra funding and changes to childcare and early years support, arguing that a more accessible and affordable system was an immediate economic priority.
It comes as the government faces growing demands to expand the 30 hours of childcare for three- to four-year-olds in England, with different schemes in Scotland, Wales, and Northern Ireland.
Warning that parents in Britain faced among the most expensive childcare costs in the developed world, the CBI said an independent review of the system was long overdue, while suggesting changes could help firms grappling with record numbers of job vacancies.
The intervention before the chancellor Jeremy Hunt’s spring budget comes as ministers review options for increasing participation in the workforce after an exodus of “missing workers” since the Covid pandemic.
Official figures show almost 9 million working-age adults are economically inactive – neither in work nor looking for a job – including men and women who are caring for family.
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