Childcare Ask 3

Establish schemes to provide social security claimants with interest-free loans or payments to cover the up-front costs of childcare provision, such as deposits.

Why?

Often a deposit, an administration fee as well as the first month’s fees are required to be paid in advance to secure a childcare place, before a pay cheque is received. In London this payment is usually between £1,000 to £2,000 depending on the type and location of childcare; a prohibitively expensive amount for many low income or single-parent families. The Mayor of London has introduced a childcare deposit loan across the GLA group of employers to provide a loan to employees who need to secure a childcare place for their child. A growing number of London’s local authorities are offering the loan including Brent, Southwark and Waltham Forest. Check out the GLA's Childcare Deposit Loan toolkit below