A study of Mapledene Early Years Centre in Hackney, east London, found that mothers were more likely to be in paid employment 18 months after taking up a full-time high quality nursery place than those making other childcare arrangements.
This study on the economic benefits of full daycare for families in deprived areas examined the health, education and social costs and found a net social gain of 837 for each household who took up a nursery place.
The cost to the Government of providing a place was on average 12,278 over 18 months. This outlay saves families the cost of private childcare and improves parental chances of getting work.
Families with children from six months to three-and-a-half years were randomly allocated a place: 62 mothers were allocated a childcare place and 75 mothers were in the control group and using a variety of informal and formal childminding, local authority and independent day nurseries, friends or neighbours, and voluntary or community nurseries.
The mothers were interviewed after 18 months. The research is a companion report to an earlier study, which sought to establish the effects of daycare on the health and welfare of mothers who attended the early excellence centre.
One of the report's authors, Professor Miranda Mugford of the University of East Anglia, said, 'Rich families pay for daycare knowing that it is a good investment but poor families can't afford it, which means they don't start building their household earnings until their children are much older.
Evidence from the USA has already shown that investing in daycare for poor families makes sense, but this is the first time there has been good evidence from the UK and the message is exactly the same.'
Mapledene is now a Sure Start Children's Centre. Head of centre Jan Turner said, 'Early excellence centres were very much the forerunner of children's centres. The centre still supports a diverse group of families. But it's not just about employment, it's a holistic approach, helping families to take the next steps they need.'
The results of the research are published this month in volume 32 of the journal Child: Care, Health and Development.