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Childcare can help drive the economy

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Nick Clegg talks to two-year-old Alice at the Mace Montessori nursery in London, as he announces the extension of the government's free childcare to two-year-olds scheme. Photograph: Peter Macdiarmid/Getty Images

I'm writing this piece on childcare while entertaining my new baby and toddler – Nick Clegg's rehashed announcement on childcare funding for two-year-olds isn't nearly as entertaining as colouring in or playing peek-a-boo but it has made me think that it's time for us to stop playing with our toys and make the economic case for universal childcare. It is welcome news that 40% of disadvantaged two-year-olds will be able to access 15 hours of free childcare provision from next September. However this is just a drop in the ocean as to what parents need given the losses they've seen under this government.

Families face a triple whammy childcare crisis of the government's own making with prices rising faster than inflation, places plummeting due to the slashing of supply-side funding and cuts to financial help with childcare costs through working tax credit. The government's latest tax-free childcare announcement will help the richest the most and, according to the Resolution Foundation, could see the income of poorer families cut. Read more...