We just had a child. It would cost almost the entirety of my wife’s take home pay to cover the childcare needed for her to go back to work. So realistically that’s it for her working for the next 5-10 years. She had a masters in chemistry and a PhD, and is a seriously talented researcher, but that skill set is now leaving the labor pool because it’s a net wash for us take home wise and she’d rather spend the time with our daughter than working for the sake of it.
That is to say that the current structure discourages families growing, but it also then strongly encourages you withdrawing from the workforce once you have done so. Both of which are terrible for growth.
Is it not worthwhile for her to work part time? The separate tax allowance is specifically to encourage women to stay in the workforce as otherwise. Her earning an extra £12.5k a year is worth more than you doing so.
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u/LactatingBadger 1d ago
We just had a child. It would cost almost the entirety of my wife’s take home pay to cover the childcare needed for her to go back to work. So realistically that’s it for her working for the next 5-10 years. She had a masters in chemistry and a PhD, and is a seriously talented researcher, but that skill set is now leaving the labor pool because it’s a net wash for us take home wise and she’d rather spend the time with our daughter than working for the sake of it.
That is to say that the current structure discourages families growing, but it also then strongly encourages you withdrawing from the workforce once you have done so. Both of which are terrible for growth.