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Having a child “feels like financial suicide” for parents, the head of a charity has said, after a study found more Britons are taking on debt to pay for childcare.

Commissioned by campaign group Pregnant Then Screwed, the survey said almost half of parents of under-fives in England say they have taken financial blows as the cost of childcare bites.

Speaking after the study was released, the charity’s founder Joeli Brearley said that as well as a cost of living crisis, “we’ve got a cost-of-working crisis that disproportionately impacts mothers”.

She said many parents who want to have more children “cannot afford to do so”, and added: “Being a parent is tough enough, but when having more children means sacrificing your income, procreation feels like financial suicide.

“If we aren’t careful, becoming a parent will be a luxury item, and the economy can’t afford to pay that price.”

The government’s Money Helper website says on average, the cost of sending a child under the age of two to nursery full time is now £269.86 a week, or £14,030 a year.

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From February 2023: Grandmum sells home to pay childcare

Around 46% of parents told the charity they have gone into debt or raided their savings to raise their children, up from 35% in last year’s survey.

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Polling also found that around 70% of mothers agreed that “after paying for childcare it doesn’t make financial sense” for them to go to work. Half of the fathers surveyed felt the same.

It comes after it was announced last year that from April, eligible working parents of two-year-olds will be able to get free 15 hours of childcare support. From September, the 15 hours will be extended to parents of children aged nine months to three years.

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The government hopes that by September 2025, all eligible working parents with children aged nine months and up will be able to access 30 hours of childcare a week.

But the survey also found that 90% of parents do not believe the government’s promise that childcare costs will reduce.

Pic: iStock
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Pic: iStock

Other findings included 37% of parents saying they had to use credit cards, take out a loan or borrow money from family or friends to pay for childcare.

More than a fifth of parents, 22%, also said they had to withdraw money from savings or their pension.

The study used a final sample of 5,870 respondents, which were randomly selected from a pool of 35,800 survey respondents.

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Royal College of Psychiatrists pulls support for assisted dying bill

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Royal College of Psychiatrists pulls support for assisted dying bill

The Royal College of Psychiatrists (RCP) has pulled its support for the assisted dying bill.

The announcement is a blow to supporters of the bill ahead of its return to the House of Commons on Friday.

It comes as plans to legalise assisted dying in Scotland passed the first stage this week.

Dr Lade Smith, president of the RCP, said: “The RCP has reached the conclusion that we are not confident in the Terminally Ill Adults Bill in its current form, and we therefore cannot support the Bill as it stands.”

The move is significant because, under the bill’s current stipulations, a panel including a psychiatrist would oversee assisted dying cases.

The RCP outlined a number of issues it had with the current bill, including: the bill not making provision for unmet needs, whether assisted suicide is classed as a treatment or not, what the psychiatrists’ specific role on the panel would be, and the increased demand the bill puts on psychiatrists.

If the college support remains withdrawn, and the bill passes, it isn’t clear what effects it may have.

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Kim Leadbeater, the MP behind the bill, has confirmed it will include a clause that means anyone who does not want to be involved in the process will not have to do so.

Supporters of the bill argue it would ease the suffering of dying people, while opponents argue it would fail to safeguard some of the most vulnerable people in society.

Kim Leadbeater MP defends changes to Assisted Dying Bill
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MP Kim Leadbeater talking to Sky News

Questions over the bill

The more prominent role of a psychiatrist in the bill came about after a previous amendment.

Initially, the bill said that after two independent doctors approved an assisted dying case, it would then need to be further approved by a High Court judge.

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But MPs on the parliamentary committee scrutinising the bill voted to remove that clause in March.

Instead, Ms Leadbeater proposed a voluntary assisted dying commissioner that included an expert panel with a psychiatrist.

She said this was a “strength, not a weakness,” but opponents of the bill disagreed, saying removing the High Court judge “fundamentally weakens protections for the vulnerable”.

However, amid changes and amendments to the original bill, there has been growing concern about safeguarding and timeframes, Sky News political correspondent Ali Fortescue reported.

Friday’s debate was already delayed from 25 April, to give MPs more time to consider amendments.

If the bill passes on Friday, it will move to the House of Lords, where it will undergo similar legislative stages, and if it passes that too, it won’t come into effect until at least 2029, after its implementation was delayed.

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Civil service relocation and AI officials at heart of government cost cutting measures

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Civil service relocation and AI officials at heart of government cost cutting measures

AI civil servants and sending human workers out of London are at the heart of the government’s plans to cut costs and reduce the size of the state bureaucracy.

Shrinking the civil service has been a target of both the current Labour and recent Conservative governments – especially following the growth in the organisation during the pandemic.

From a low in 2016 of 384,000 full time workers, in 2024 there were 513,000 civil servants.

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The Department for Science, Innovation and Technology is claiming a new swathe of tools to help sift information submitted to public consultations could save “75,000 days of manual analysis every year” – roughly the work of 333 civil servants.

However, the time saved is expected to free up existing civil servants to do other work.

The suite of AI tools are known as “Humphrey”, after Humphrey Appleby, the fictional civil servant in the TV comedy Yes, Prime Minister.

The government has previously said the introduction of AI would help reduce the civil service headcount – with hopes it could save as much as £45bn.

Speaking today, Technology Secretary Peter Kyle appeared to take aim at expensive outsourcing contracts, saying: “No one should be wasting time on something AI can do quicker and better, let alone wasting millions of taxpayer pounds on outsourcing such work to contractors.”

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March: 10,000 officials could go

Move outside of London

Other money-saving plans announced today include moving 12,000 civil servants out of London and into regional hubs – with the government hoping it can save almost £100m by 2032 by not having to pay for expensive leases of prime office space in the capital.

Currently, 95,000 full time civil servants work in London.

Tens of millions of pounds a year are expected to be saved by the closure of 102 Petty France, which overlooks St James’s Park, and 39 Victoria Street, which is near the previous location of New Scotland Yard.

In total, 11 London offices are slated for closure, with workers being relocated to the likes of Aberdeen, Belfast, Darlington, Bristol, Manchester and Cardiff.

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The reforms of the civil service are being led by Chancellor of the Duchy of Lancaster Pat McFadden – one of Sir Keir Starmer’s most influential ministers.

Mr McFadden said: “To deliver our plan for change, we are taking more decision-making out of Whitehall and moving it closer to communities all across the UK.

“By relocating thousands of civil service roles we will not only save taxpayers money, we will make this government one that better reflects the country it serves. We will also be making sure that government jobs support economic growth throughout the country.

“As we radically reform the state, we are going to make it much easier for talented people everywhere to join the civil service and help us rebuild Britain.”

The government says it wants senior civil servants out of the capital too – with the aim being that half of UK-based senior officials work in regional offices by the end of the decade.

The government claims the relocations and growth of regional hubs could add as much as £729m to local economies by 2030.

Pat McFadden delivers a keynote speech to the CyberUK conference.
Pic: PA
Image:
Pat McFadden is leading the changes to the Civil Service. Pic: PA

Union welcome – cautiously

Unions appear to cautiously welcome the changes being proposed.

All of Prospect, the PCS and the FDA say it is positive to see better opportunities outside of the capital.

However, they have asked for clarity around whether roles may be lost and what will be offered to people transferring.

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Fran Heathcote, the general secretary of the PCS union, said: “If these government proposals are to be successful however, it’s important they do the right thing by workers currently based in London.

“That must include guarantees of no compulsory redundancies, no compulsory relocations and access to more flexible working arrangements to enable them to continue their careers should they wish to do so.”

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US lawmakers call for change in corporate digital asset taxes

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US lawmakers call for change in corporate digital asset taxes

US lawmakers call for change in corporate digital asset taxes

Two US senators are calling on Treasury Secretary Scott Bessent to “exercise [the department’s] authority” and change a provision affecting taxes on corporate holdings of digital assets.

In a May 12 letter, Senators Cynthia Lummis and Bernie Moreno suggested Bessent had the authority to change the definition of “adjusted financial statement income” under existing US law in a way that could reduce what digital asset companies pay in taxes. The proposed adjustment was suggested as a way to modify a provision of the Inflation Reduction Act, signed into law in 2022.

“Our edge in digital finance is at risk if US companies are taxed more than foreign competitors,” said Lummis in a May 13 X post.

Cryptocurrencies, Law, Taxes, Senate
May 12 letter to Treasury Secretary Scott Bessent. Source: Cynthia Lummis

According to the two senators, the proposed modification would provide “relief to corporations that invest in digital assets.” Lummis has been one of the most outspoken digital asset advocates in Congress, while Moreno took office in January after crypto-backed political action committees spent roughly $40 million to support his 2024 Senate race.

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The Inflation Reduction Act, which went into effect in 2023, imposes a 15% minimum tax on companies that report more than $1 billion in profits for three consecutive years. The measure would seemingly include unrealized crypto gains and losses, leading to Lummis’ and Moreno’s calls for the Treasury Department to “act swiftly.”

Senate awaiting second vote on stablecoin bill

The call from the two senators came as lawmakers in the Senate are expected to consider another vote on the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act — legislation to regulate payment stablecoins in the US. A motion for consideration failed to move forward in the Senate on May 8 due to Democratic lawmakers pushing back on Donald Trump’s ties to the crypto industry.

Lummis, one of the bill’s co-sponsors, suggested that she would continue to support digital asset regulation. The Senate could take up another vote in a matter of days.

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