Labour Markets Evaluation and Pilots (LMEP) Fund: funded projects

Details of the pilots and evaluations funded by HM Treasury’s Labour Markets Evaluation and Pilots (LMEP) Fund.

Added links to two published evaluation reports from HMRC.

The Labour Market Evaluation and Pilots Fund provided funding to government departments to carry out research that improved the government’s evidence base on what works to improve labour market outcomes. It was announced at Spring Budget 2023.

HM Treasury administered this funding in collaboration with the Evaluation Task Force (Cabinet Office). Government departments were eligible to submit proposals for projects either to better understand the impact of recently implemented interventions on labour market outcomes, or to trial new and innovative programmes. HM Treasury and the Evaluation Task Force oversaw three competitive bidding rounds.

Round 1 Funded projects (awarded August 2023)

Evaluating the impact of Tax-Free Childcare on labour market participation of working parents [HMRC]

This project was a commissioned piece of mixed-methods research, including a quantitative survey of around 3600 parents, followed by 60 in-depth qualitative interviews. It was carried out by Ipsos, who were recruited by HMRC following a standard tendering process.

Building on previous research, this project further explored the role Tax-Free Childcare (TFC) has in decisions around work preference and labour market retention. It offers a high-level comparison of existing users and eligible non-users, to better understand the role and importance of TFC in making childcare decisions.

The survey found that TFC impacted the hours worked by some parents. TFC was one contributing factor to parents’ work decisions alongside childcare choices, work arrangements and overall household finances. The extent to which TFC impacted work hours varied based on personal, work and financial circumstances.