STUC backs Usdaw call for action to tackle the growing lack of affordable, flexible and accessible childcare

Retail trade union Usdaw has a delegation of members, reps and officials attending the annual conference of the Scottish Trade Union Congress (STUC) in Dundee, which started on Monday and concludes tomorrow.

Moving the composite motion about childcare, Elaine Dennis – Usdaw delegate said: “In recent years working parents across Scotland have come under huge strain due to the growing lack of affordable, flexible and accessible childcare.

“Undoubtedly, the cost of living crisis has intensified this problem, with women often bearing the brunt. Childcare is not just an equality issue and a trade union issue, it’s key to economic growth and essential to tackling child poverty.

“Despite childcare being so crucial to working families and women’s equality.

“The current system is failing parents who are struggling to find good quality affordable childcare, failing childcare workers, who are often underpaid, and underappreciated, and failing children across Scotland, who are missing out on vital opportunities with one in four living in poverty.

“Most Usdaw members work in lower paid sectors like retail and warehousing; the majority are women, so childcare is a huge issue for our members. The costs of childcare and nursery fees are simply unaffordable for many parents in lower paid jobs and even where free hours are available, the system is complicated and difficult to navigate. Many families don’t know what they are entitled to and many more are left with huge gaps in provision.

“Balancing work with childcare in a sector like retail is not easy and women are often the primary carer. It is so often invisible to employers and managers, yet it shapes working lives.

“We know from supporting many of our women members with children, the effort they put in to making themselves available for work is enormous. It often means getting up very early or going to bed very late and regularly arriving at work on very little sleep.

“It means putting a lot of effort into scheduling childcare around work, creating a complicated patchwork of support. Working out when grandparents, neighbours or older siblings are available to look after young children in the morning, evening or for a few hours after school. This is why good wraparound childcare provisions are so important to working parents.

“We know that many parents work ‘opposite shifts’, with families barely able to spend a minute of quality time together. Workplace policies help and unions do a great job negotiating flexible working agreements that make a real difference to women’s working lives, but women working in part-time, low hours and low paid jobs, who are worried about holding onto them, are often too afraid to ask their employer for help.

“A successful childcare system should enable parents to work the jobs and the hours that they choose to. Instead, it is a barrier to work for those in lower paid jobs.

“It prevents women from progressing, trapping families in poverty and ingraining inequality. We desperately need a childcare system that supports working parents and grandparents, valuing these dedicated workers and supporting families in Scotland.”

Shrinking Safety Nets: Working families raid savings to meet the demands of rising living costs 

  • The average working household has £2,400 in savings –  the equivalent of less than a month’s worth of basic expenses
  • Over half of all savers say they will fall back on their rainy-day funds to meet rising living costs
  • Working families estimate they need £12,100 in the bank to feel financially secure but less than a third of households have this set aside
  • It would take the average household three years to put aside the desired financial safety net

One in four working households with savings (28%) have started dipping into them to meet rising living costs, according to a report from Legal & General. A further 30% anticipate they will need to do so in the next year.

With consumer prices 10.1% higher in July 2022 than a year before2, and with annual household energy costs set to rise to an average £2,500 in October 20223, many households will likely have to rely even more on the money they have tucked away. This could see household savings built up during the pandemic lost.

The average working household currently has £2,400 in savings. However, this equates to less than a month of basic expenditure for the average family, if they lost their income and were pushed to rely on their savings.

Financial security under threat

To feel financially secure, households estimate they need £12,100, or nearly five months worth of basic household expenses, set aside. However, only three in 10 working households (30%) have this set aside, and pressure to dip into savings will likely see this number fall.

Based on current savings patterns, with the average working household saving just over £300 a month, it would take three years to reach the desired financial safety net, and nine years to put aside a year’s worth of essential spending. However two-thirds (64%) of all households that currently save have either already decreased or stopped their savings habit altogether (31%), or expect to have to do so (34%), due to increased living costs.

No safety net for some

There is also a growing number of people who cannot put aside any money; nearly 1.9 million households have no money left at the end of the month, an increase of 330,000 since 2020.

This is likely why 16% of households have no savings at all in case of emergency.

“With the cost of basic essentials on the rise many households will find themselves having to make difficult choices and dipping into savings  is likely to become more common. This is a far cry from the five-month financial safety net that people hope for”, said Bernie Hickman, CEO, Legal & General Retail.

“It can be concerning for people to feel like they have nothing to fall back on in times of difficulty. While dipping into savings is inevitable for some,  there are also steps people can take to try to control their costs as much as possible by checking their regular outgoings and subscriptions, shopping around for discounts and deals and by making sure they are taking up free financial guidance services like MoneyHelper.

“To help people better understand their money and make informed decisions, we have put together a financial safety net content hub to help people find free tools and resources.”