I don't think it's as bad as the headline implies
disclaimer: I'm not the child care expert.
If the problem of actually securing a job one can live on is solved, I don't see a problem with the child care being provided by a relative or friend. That relationship connection can offset the lack of inspections and such…it is significant that children be cared about, as well as cared for.
Women Who Leave Welfare Find Few Day Care Options
By LESLIE KAUFMAN
Since the nation's welfare system was overhauled in 1996, New York City has received hundreds of millions of additional state and federal dollars intended to help women leave welfare for work and to greatly expand the city's low-income child care system.
But the money has not significantly increased the number of licensed day care slots, for which the waiting list is now over 36,000. Instead, more than two-thirds of the 14,400 slots created in the last five years are in so-called informal care, the lowest-cost, unlicensed form of child care, which is not inspected or regulated by the state.
There are many reasons for the growth of informal care: it costs the government about one third less per child, it is flexible enough to meet the unconventional hours many poor parents work, and because it is usually provided by a relative or a friend who receives checks directly from the government, women coming off welfare often prefer it to other choices.
But the explosion of informal care in New York and in other parts of the country has been met with concern by advocates for welfare recipients. They cite studies showing that informal care is less stable than licensed care based in centers and homes, and its safety and educational value are unknown.
Worse, they argue, parents leaving welfare do not really have a choice in care, as federal law demands, because they are given a limited time to find child care, and because center-based day care is so oversubscribed.