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Some parents would be better off not working, claims report

A think-tank is calling for an overhaul of childcare, as it says the 'extortionate' costs of daycare threaten the Government's attempts to make work pay.

The Centre for Social Justice (CSJ), founded by Iain Duncan Smith, says that high childcare costs need to be tackled to ensure Government plans to make work pay reach their full potential.

A report by the think-tank shows that from next year the cost of childcare subsidies will reach £2.3 billion annually or as much as £910 a month for a couple with two children.

While the think-tank acknowledges that the Universal Credit will make work pay for more parents, it says the Government must not stop there.

According to the CSJ, 455,000 UK families receive state support towards their childcare costs, with average payments of £232 a month.

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