US Moves Closer to Universal Childcare

The United States has always lagged behind Europe when it comes to universal entitlements and childcare is no exception. That, however, could all be about to change as President Biden’s ‘American Families Plan’ looks likely to come to fruition as part of a multi-trillion dollar ‘Build Back Better’ package. If enacted by the US Congress, this would bring free kindergarten education to all American families, representing a massive boon to working parents, and one that might be badly needed as the world’s largest economy emerges from the pandemic.

There are still battles ahead. Biden holds only the smallest possible majority in the Senate, and therefore every member of his party must vote for the bill. Unfortunately for him, a conservative Democrat called Joe Manchin is holding out over some other provisions such as paid parental leave, that he believes the US cannot afford. Even so, it looks as if even if these measures are stripped out, a childcare entitlement will remain.

This means the US will soon need to learn the lessons of the UK and other countries that have swiftly increased access to childcare, and there could be implications down the line for the UK childcare market. We know from our experience that guaranteed government funding attracts investment as it catapults childcare businesses into the sights of venture capitalists. Successful UK groups might start to look across the pond for opportunities, and in decades to come, US franchises could reach our shores too.