Childcare: Fees and Charges

(asked on 5th February 2024) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of the expansion in government funded childcare on the cost of paid for hours.


Answered by
David Johnston Portrait
David Johnston
Parliamentary Under-Secretary (Department for Education)
This question was answered on 12th February 2024

The department is providing over £4.1 billion by 2027/28 to fund 30 hours of free childcare per week (38 weeks per year) for eligible working parents with children aged 9 months to 3 years in England. This will remove one of the biggest barriers to working parents by vastly increasing the amount of free childcare that working families can access. Hundreds of thousands of children aged 3 and 4 are already registered for a 30-hour place, saving parents up to £6,000 a year. The department is expanding this entitlement across the country, which will save parents up to £6,500 per year per child. This will help even more working parents with the cost of childcare and make a real difference to the lives of those families. By 2027/28, the Office for Budget Responsibility expects around 60,000 parents to enter employment, in addition to 1.5 million mothers of young children already in work who will increase their working hours.

In addition to the expanded entitlements, the government has also taken action to support parents on Universal Credit with childcare costs upfront when they need it, rather than in arrears. The department has increased support for these parents by increasing the childcare cost maximum amounts to £950 for one child and £1629 for two children.

Tax-Free Childcare remains available for working parents of children aged 0-11, or up to 17 for eligible disabled children. This can save parents up to £2,000 per year, or up to £4,000 for eligible children with disabilities, and has the same income criteria as 30 hours free childcare.

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