The Confederation of British Industry has said that the Government should do more to support working families by making childcare more affordable.
The business leaders’ group said that the slow pace of economic recovery meant that families and people on low incomes were still struggling.
The average couple with two children saw their income fall by £2,132 a year in real terms between 2009-10 and 2012-13, the CBI claimed.
Expanding the current free childcare scheme to include one and two-year-olds as well as three and four-year-olds would help raise incomes and get more adults into work.