A lack of available nursery provision is having ’detrimental’ impact on the quality of life for families affected - and the economy.

That’s the conclusion of a committee investigation into the adequacy of nursery provision, which found there was a ’severe shortage’ of nursery places available for children under the age of two.

It finds that the number of nursery and childminder places for children aged under two was less than a third of the actual number of children in that age group, causing a ’severe shortage’.

Tynwald’s social affairs policy review committee has now called for a new strategy for working families with children aged up to five to be drawn up.

It should cover areas such as parental leave, the possibility of extending the current pre-school credit system to children aged below the three-four-year-old category and incentivising private sector nurseries to offer places for children under two.

It says a minister should be put in charge of the strategy and told to report back to Tynwald with recommendations next year.

The committee, chaired by David Cretney MLC, says: ’We conclude that a lack of nursery provision has a detrimental impact not only on the quality of life of the children and families who are directly affected, but also on the economy of the island as a whole, because it can prevent parents or other family members from working.’

However, the committee also finds: ’The level of financial support towards the costs of childcare which is given through the benefits system to parents on low incomes is acceptable.’

During hearings, the committee heard that there were only 12 providers, with a maximum of 126 places, that had provision for children aged two or under.

More than 40% of parents of children in that age group found it very difficult to find provision, compared with just 3% of parents of three-four-year-olds.

Education chiefs admitted that hopes the pre-school voucher scheme - introduced to assist parents of three and four-year-olds after the closure of state-run pre-schools in 2012 - might have had a knock-on effect and helped parents afford provision for younger siblings, had not borne out.

Providers had also indicated that the cost of staffing had caused problems, particularly with ratios, when it came to younger age categories.

The rules stipulate there should be one staff member to three children for those aged up to two. The ratio increases to one to eight for the older age groups.

The Department of Education, Sport and Culture, however, told the committee it was strongly against any relaxation in those ratios.

In its report, which will be laid before Tynwald next week but is not scheduled for debate at the April sitting, the committee says: ’Significant success in increasing the number of places available for under-twos will not be achieved unless the financial cost to providers of complying with the necessary regulations, particularly the staff ratios for care of younger children, is recognised.’

It calls for a ’cross-departmental’ approach and also criticises a previous committee report that ruled out using public funds to assist working families with childcare.

’Consideration should be given to an incentive scheme to encourage private sector providers to offer facilities for children under two years,’ the report says.

The committee also recommends that Treasury should review ’legislation, policy and practice on parental leave’.

It adds: ’A strategic approach is needed to the social and economic issues highlighted by the current shortage of nursery places.’

This should be developed by the DESC alongside the Department of Health and Social Care, Department for Enterprise and the Treasury.