£7,500 on average under Govt funded Childcare Support: Good NEWS for Working Parents

Parents across England are set to benefit from new protections against additional childcare charges, ensuring that government-funded childcare remains affordable and transparent. This move is part of the government’s wider effort to make early education accessible, support working parents, and prepare more children for school.

With these updates, families could save up to £7,500 per year on childcare costs, allowing more parents to return to work while ensuring children receive high-quality early education.

New Rules to Protect Parents from Hidden Childcare Costs

The updated government guidance, published today, aims to make childcare costs more transparent by:

• Ensuring that additional charges (for items like nappies, wipes, or lunch) are clearly stated upfront.
• Stopping providers from making extra fees a condition for accessing free childcare hours.
• Supporting local authorities in enforcing these rules to ensure no family is unfairly charged.

By addressing hidden fees, the government aims to ensure that no family is priced out of the childcare support they are entitled to.

How Families Will Benefit from Government-Funded Childcare

The government has pledged to help parents save money and increase access to early education through several initiatives:

1. More Free Childcare Hours for Working Parents

• Parents using the full 30 hours per week of funded childcare can save up to £7,500 per year compared to paying out of pocket.
• From September 2025, funding will expand to support parents of children as young as nine months old.

2. Increased Government Investment in Early Years Education

• The government is investing over £8 billion into early years education next year.
• A £75 million expansion grant will help providers offer more childcare places, benefiting working parents.
• Private nurseries, voluntary providers, and childminders will share £500,000 per local area in funding support.

3. Extra Support for Early Years Education Providers

• Funding includes £80 per two-year-old child and £110 per child under two to help providers maintain high-quality education and childcare services.
• Some larger local authorities could receive up to £2.1 million to expand their childcare services.

Improving Early Education: Maths Champions and Stronger Practice Hubs

To further enhance early childhood education, the government is supporting teachers and childcare providers through:

1. Stronger Practice Hubs Programme

• 18 regional hubs will continue to help early years educators deliver high-quality education.
• These hubs provide training, resources, and evidence-based teaching methods to improve child development outcomes.

2. Maths Champions Programme

• The Maths Champions programme, run by the Education Endowment Foundation and the National Day Nurseries Association, helps children build strong maths skills.
• Research shows children participating in the programme make three months’ additional progress in maths compared to those who don’t.
• Up to 800 nurseries and early years settings will receive training in 2025 to support children’s early maths learning.

Why This Matters for Families and Childcare Providers

These reforms are part of the government’s Plan for Change, aimed at ensuring:

• More children are school-ready by age five.
• Parents can afford childcare and return to work without financial strain.
• High-quality early education is available to all children, regardless of background.

Education Secretary Bridget Phillipson emphasized the importance of these reforms, stating:

“Giving every child the best start in life is my top priority. We are investing in early education to ensure that all children, regardless of their background, can access high-quality learning opportunities.”

Expert Reactions to the New Childcare Reforms

Lydia Hodges, Head of Coram Family and Childcare

“These updates bring much-needed transparency to childcare costs, helping families—especially disadvantaged ones—access their entitlements without financial barriers.”

Emily Yeomans, Co-CEO of the Education Endowment Foundation

“Early maths skills are crucial for future success. We’re excited to provide hundreds of nurseries access to the Maths Champions programme to help children, especially those from disadvantaged backgrounds.”

The UK government’s expansion of funded childcare and its focus on reducing additional costs will significantly ease the financial burden on families while ensuring more children receive quality early education. With billions in investment, improved teacher training, and stronger childcare regulations, these measures aim to support working parents, boost children’s learning, and create better long-term opportunities for all families.

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