United for All Ages believes the current system is a mismatch of complex funding and needs a complete overhaul.
‘An online childcare account system would have relatively low start-up costs and the system could deliver the childcare element of working tax credit which is currently flawed,’ she said.
The online account would combine the various sources of childcare funding available to parents, such as the free entitlement to three and four-year-olds, and tax credits and vouchers. This would then enable parents to spend funds with whichever childcare provider they choose. The idea could make childcare more affordable for parents, and more sustainable for providers.
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