by Ian Girling, chief executive, Dorset Chamber of Commerce and Industry

ANY working parent will tell you of the challenges the cost of childcare places on families. I know from personal experience how expensive childcare is, particularly before children are of school age, and for many, there is an important decision to be made as to whether it’s more financially viable to either work or stay at home with your children. For many families, the cost of childcare is prohibitive and parents are forced to either stop working or reduce their hours to try and manage these costs.

This presents a real challenge to businesses in terms of recruiting and retaining staff and in August 2016, the British Chambers of Commerce undertook a survey in partnership with Middlesex University of over 1,600 businesses to understand their workforce planning priorities and issues. The impact of the cost of childcare for both employees and employers were very clear; 28 per cent of firms surveyed reported a reduction on working hours as staff are forced to cut hours, 12 per cent of firms reported a reduction in productivity due to this and nine per cent of firms saw employees leave due to childcare costs.

It’s been recognised by government that this is a major issue and action is needed. At the time of the survey, with plans to double the amount of free childcare this year, 39 per cent of firms stated this would have a positive impact on recruitment and 37 per cent of firms stated this would have a positive impact on staff retention.

There is some good news for working parents as plans to increase the level of free childcare become effective later this year. Currently all children aged three to four are entitled to 15 hours’ free childcare per week for 38 weeks per year. Some children aged two are also entitled to 15 hours of fee childcare. From September 2017, the Government are offering an additional 15 hours per week free childcare across the UK. There is also the option to stretch the entitlement to more than 38 weeks by using fewer hours each week. This is being piloted with 12 local authorities from April 2017 and the great news is the unitary authority of Dorset is one of these pilot areas. This will come in to effect in September 2017 for children in the unitary authority areas of Bournemouth and Poole. There is also more good news as the Government introduce tax free childcare later this year with the ability for parents to set up an online childcare account to pay your childcare provider directly. If you are eligible for 30 hours free childcare, you will be able to apply for the tax-free childcare scheme ahead of national rollout.

Its important parents are aware of this to take advantage of this and more information can be found at the Dorset Family Information Service on Facebook. You can also find out more information dorsetforyou.gov.uk/tax-free-childcare