The UK has some of the world’s most expensive childcare.
The government has announced extra help for some working parents in England – but experts warn the impact remains “highly uncertain”.
Who will get 30 hours free childcare and when will it start?
In the Budget, Chancellor Jeremy Hunt said the current scheme offering some families 30 free hours of childcare per week would be extended to cover younger children.
The changes will be phased in for households in England where the parent or parents earn at least £152 a week but less than £100,000 a year:
- April 2024: Eligible two-year-olds will get 15 hours of free childcare per week
- September 2024: Eligible children between nine months and two years will get 15 hours
- September 2025: Eligible children between nine months and three years will get 30 hours
But Paul Johnson, from the Institute of Fiscal Studies (IFS), said he doubted the changes would make “a big difference” and they may help only “a few tens of thousands” of parents return to work.
What other childcare help was announced?
- the hourly rate paid to childcare providers for free care will increase
- the 700,000 families on universal credit will get childcare support upfront, instead of having to reclaim it
- people on universal credit will be able to claim £951 each month for childcare for one child and £1,630 for two – up from £646
- a £600 incentive for people signing up to become childminders (or £1,200 through an agency)
Each staff member in England will also be allowed to look after five two-year-olds – up from four now – if providers wish to do so.
When this was first proposed, the government said it could save parents up to 15% – about £40 a week for a family paying £265 for 50 hours of nursery care.
But the Early Years Alliance – which represents about 14,000 childcare providers – said the “shameful decision” risked compromising safety, quality of care and staff well-being.
Mr Hunt also said the government would ensure all schools in England offer wraparound care between 08:00 and 18:00 by September 2026.
Who can get free hours childcare now and how does it work?
At the moment all three and four-year-olds are entitled to some free childcare throughout the UK. Different schemes operate in England, Scotland, Wales and Northern Ireland. It must be delivered by officially-registered providers.
In England, all three and four-year-olds are entitled to 15 hours of free childcare per week in term time, or 38 weeks a year. Free hours can be used in some private nurseries or state-run pre-schools.
Children of eligible working parents are entitled to 30 free hours per week. Both parents must earn at least £152 per week on average to qualify.
At the moment two-year-olds in England can also have 15 hours of free childcare under certain circumstances, for example if the family receives universal credit.
The free hours are available from the start of the term after the child reaches the relevant age.
What other help with childcare costs is available?
Under the tax-free childcare scheme, the government pays £2 for every £8 families contribute, up to a maximum of £2,000 per child per year (£4,000 for disabled children).
The money can be used for approved childcare including childminders, nurseries, nannies, and after-school clubs. It can be used alongside free childcare hours if parents qualify for both.
To be eligible, a parent and their partner each need to earn (on average) at least £152 a week but less than £100,000 a year.
Families claiming universal credit who aren’t using the tax-free childcare scheme can claim back up to 85% of childcare costs.
Parents under 20 in England, who are at school or sixth form college, can also receive weekly payments under the Care to Learn scheme, worth £160 per child per week outside London, or £175 inside the capital.
How expensive is childcare across the UK?
It depends on the age of the child, the number of hours and the type of care.
The average cost of full-time nursery (50 hours a week) for a child under two in Britain is nearly £15,000 a year, according to the charity Coram. Equivalent care from a childminder is nearly £13,000.
How does the UK compare with the rest of the world?
The UK is the third most expensive country for childcare among members of the Organisation for Economic Co-operation and Development (OECD), behind Switzerland and New Zealand.
Its figures are based on a family with two children aged two and three attending nursery for at least 40 hours a week, taking into account state support.
How do childcare costs affect women?
There are no official figures on how many women no longer work as a direct result.
However, data from the Office for National Statistics says about 1.5 million women don’t work due to caring responsibilities. They are part of a wider group called the “economically inactive” who are neither employed nor actively seeking work.
A 2022 survey by the Pregnant then Screwed charity reported that 43% of mothers had made them consider leaving their job because of childcare costs. Two-fifths worked fewer hours than they wanted.
