Justine Greening MP,
Economic Secretary to the Treasury
HM Treasury
1 Horseguards Road
London
SW1A 0AA

16 August 2011

Dear Justine,

Save the Children and Daycare Trust campaign on childcare support

I am writing to you in support of the above campaign, about which I have received communications from concerned constituents.

I very much share the view of my constituents that, without more action from Government to provide decent, affordable childcare, many parents cannot access and sustain work.

All the international evidence suggests that more publicly funded childcare results in higher employment rates and lower rates of child poverty. It's crucial that, as a society, we do more to support low income parents into work. For parents with a disabled child or a disability themselves, the absence of suitable publicly funded childcare and lack of support around flexible working makes employment particularly difficult.

The extra £600 million needed for the modest increase in subsidy that the campaign calls for would be an up-front cost to the Treasury. However, I should be grateful for your response to the argument that much, if not all, of this would be recouped by the Treasury as more low-income parents were able to afford to work. Given that families who can be helped into work will then contribute to the Treasury's tax intake, are less likely to require support through benefits and will be happier and healthier with all the knock on cost benefits this has for the state, there is a strong case for more Treasury support for childcare costs.

I'd like to add my voice to those urging the Treasury to commit the necessary extra £600 million per year so that work really will pay for all under universal credit.

I should be grateful for your response to the points raised in this letter.

Yours sincerely,

Caroline Lucas, MP, Brighton Pavilion

Read the Minister's reply