Title page 1

Contents 3

Summary 4

Background 7

1. Parental leave and pay 11

1.1. Early childhood policies and provisions 11

1.2. Inequalities in parental pay and wages 16

1.3. Proposed reforms 17

1.4. Parents in the labour market 18

2. Childcare 21

2.1. Impact of childcare on parents 25

Annex 32

References 37

Contributors 45

Table 1. Government activity 9

Table 2. Types of pay for parents in Great Britain, May 2026 12

Table 3. Objectives of the government review of Great Britain's parental leave and pay system 15

Table 4. Childcare support in England 21

Table 5. Expansion of government-funded childcare in England 22

Table 6. Childcare funding entitlements in the four parts of the UK 32

Figure 1. Employment and fiscal effects of investing in early childhood education and care services 27

Figure 2. Total spending on the 'free entitlement' to a funded childcare place 31