{"id":7085,"date":"2023-04-26T21:04:08","date_gmt":"2023-04-26T21:04:08","guid":{"rendered":"https:\/\/www.care.com\/business\/?p=7085"},"modified":"2023-04-26T21:04:08","modified_gmt":"2023-04-26T21:04:08","slug":"the-role-government-plays-in-caregiving-benefits","status":"publish","type":"post","link":"https:\/\/www.care.com\/business\/the-role-government-plays-in-caregiving-benefits\/","title":{"rendered":"It Takes Two: The Role Government Plays in Caregiving Benefits"},"content":{"rendered":"\n
For a long time, America has been considered the greatest country on earth, where the American dream meant an opportunity for individuals to put down roots, work hard, and take control of their livelihood. Today, that dream seems to be a little harder to see, with the cost of living skyrocketing, a recession on the horizon, and more and more families struggling to secure care for their loved ones. <\/p>\n\n\n\n
The care industry has been in crisis even before the pandemic turned our world upside down. But both employers and politicians alike continue to wait for the other to step in and provide solutions for our inadequate childcare system. And while they play this high stakes game of chicken, working parents, and specifically working mothers, are quite literally paying the price. <\/p>\n\n\n\n
Progress towards a better future for our children is possible and already in motion in other parts of the world, yet America finds itself behind. In 2021, a report<\/a> conducted by UNICEF evaluated wealthy countries around the globe and ranked them according to the strength and effectiveness of their child care policies in four critical criteria:<\/p>\n\n\n\n The United States ranked 40th out of 41 established and wealthy countries for our national childcare policies, beating only Slovakia for last place due to our lack of paid parental leave, the rising cost of care<\/a>, and the fact that 51% of people in the United States live in a child care desert<\/a>.<\/p>\n\n\n\n In order for an investment in childcare<\/a> to truly make an impact, policies must be able to deliver care options that are of high quality, affordable, and accessible for families of all incomes, regions, and care needs. This could look like offering soon-to-be working parents paid parental leave, subsidizing child care benefits after the child is born, or providing public resources that equip parents with the support they need when raising their children. The most in-demand types of child care<\/a> include:<\/p>\n\n\n\n While the government continues to miss their opportunity to pass meaningful legislation and create new laws that secure a more stable care system for working families, more and more employers are beginning to step up and offer child care assistance in the form of benefits, but it’s not enough. In 2022, 56% of employers<\/a> report that they offer some form of child care benefits. Both the government and employers are aware of the cost of their inaction when it comes to child care. A Boston Consulting Group<\/a> brief forecasts that the U.S will lose $290 billion by 2030 if the country continues to fail to address our lack of affordable child care.<\/p>\n\n\n\n In the 2023 Future of Benefits report<\/a>, Care explored how views of care offerings were evolving in response to changing workplace dynamics, and many employers responded that they were holding off on expanding benefits until they knew what government policy would be. Currently, the federal government offers employers incentives to offer child care benefits through the Employer-Provided Child Care Credit<\/a>. With this tax incentive, employers are able to take advantage of a tax credit of up to 25% of their qualified child care costs and 10% of qualified child care resources and referrals. When we asked employers about their participation in the current employer-provided child care credit, we discovered the following:<\/p>\n\n\n\n In August 2022, The Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act was passed to provide $52.7 billion in federal funding<\/a> to revitalize the U.S. semiconductor industry. Applicants requesting Direct Funding over $150 million must submit plans to provide access to child care for facility and construction workers, through on- or near-site child care, pre-arranged agreements with existing child care providers, child care subsidies, or other similar measures.<\/p>\n\n\n\n\n
What does an investment in childcare look like?<\/strong><\/h2>\n\n\n\n
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The cost of inaction<\/strong><\/h2>\n\n\n\n
Where do employers currently stand?<\/strong><\/h2>\n\n\n\n
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Recent government policy<\/strong><\/h2>\n\n\n\n
What does the future hold?<\/strong><\/h2>\n\n\n\n