Disadvantaged children could be ‘priced out' of expansion to funded childcare

Independent

20-03-2025

Disadvantaged children could be being 'priced out' of accessing the same early years education as their peers in working families due to the Government's expansion of funded childcare, a report has warned.
Families who are not in work, or do not earn enough to be eligible for new funded childcare entitlements in England, will pay around £105 a week more than eligible working families for a part-time nursery place for a child under two, a survey by the Coram Family and Childcare charity has suggested.
A report by the charity said the gap between entitlements for disadvantaged children and those with working parents is 'now wider than at any other time' and is set to get 'even wider' later this year.
The expansion of funded childcare – which was introduced by the Conservative government – began being rolled out in England in April last year for working parents of two-year-olds.
Working parents of children older than nine months are also now able to access 15 hours of funded childcare a week, before the full roll-out of 30 hours a week to all eligible families in September.
A part-time nursery place (25 hours per week) for a child under two now costs an average of £70.51 per week in England after working-parent entitlements are accounted for – which is down by 56% on 2024.
But the survey suggested that for families ineligible for the 15 hours of funded childcare for working parents, a 25-hour part-time nursery place for a child under two-years-old costs £176.27 per week.
On the difference in childcare costs between families in England, the report said: 'This raises the question of whether disadvantaged children have the same opportunity to learn and play as their more affluent peers, or whether they are simply priced out of the chance to boost their future outcomes.'
A part-time nursery place for a child under two costs an average of £122.38 per week in Scotland – a 7% rise on 2024, and an average of £155.04 per week in Wales – a 10% rise on 2024, according to the survey.
The research – based on surveys from 173 local authorities in England, Scotland and Wales between November and February – found that the cost for a part-time nursery place for three-to-four-year-olds in the UK is up by nearly 5% on last year as entitlements for this age group remained the same.
Nearly four in five (79%) of local authorities in England surveyed said they have enough childcare for at least 75% of the children of working parents entitled to 15 hours of funded childcare a week.
But only 29% of local authorities in England surveyed said they have enough childcare for at least 75% of children with special educational needs and disabilities (Send) in their area.
Lydia Hodges, head of Coram Family and Childcare, said the system needs to be 'rebalanced' to ensure that all children have the best start in life.
She said: 'Parents who are not eligible for the entitlements are unlikely to be able to meet the cost involved in giving their children the same amount of early education that other children get for free, and many children with special educational needs and disabilities are still finding it hard to get a place.'
Ms Hodges added that many parents highlighted the 'positive impact' that childcare has had on their child's independence, development and happiness.
She said: 'These are things we want for all children, and we call on the Government to commit to immediate and longer-term actions so that no child misses out on this vital boost to their outcomes.'
Neil Leitch, chief executive of the Early Years Alliance (EYA), said: 'While it is positive that early years places are becoming more affordable for those families who are eligible for funded places, it's clear from today's findings that the early years sector in England is fast becoming a two-tier system.
'With the bulk of the early entitlement offers skewed towards working families, more and more children from disadvantaged backgrounds – who we know benefit the most from early education and care – are at risk of being frozen out of accessing affordable places.
'Add to this the fact that children with special educational needs continue to find it more difficult than their peers to access provision, and there's no doubt that under the existing system, the children most in need of support are now the least likely to be able to access it.'
Education Secretary Bridget Phillipson said: 'Delivering a better early years system is a top priority—it's as close to a silver bullet as we have in breaking down barriers to opportunity and giving young people the best start in life.
'This survey highlights the real difference the expanded childcare entitlements are making, with much more to come from September as government funding increases from 15 to 30 hours a week of funded childcare.
'Through our Plan for Change, we're delivering much-needed improvements for parents, making childcare more affordable, expanding school-based nurseries, and improving early language and maths support. With over half a million children already in a place this term, we'll keep working with the sector to ensure even more families benefit.'