Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the implications for her Department's policies of the press release on childcare costs published by Pregnant Then Screwed on 18 February 2024.

By the 2027/2028 financial year, this government will expect to be spending in excess of £8 billion every year on free hours and early education. This is the single biggest investment in childcare in England ever.

From April 2024, eligible working parents of 2 year olds will be able to access 15 hours of free childcare per week (38 weeks of the year) from the term after the child’s 2nd birthday. Over 100,000 parents have already applied for the expansion starting in April, and my right hon. Friend, the Secretary of State for Education, has confirmed that our latest projections show that more than 150,000 new funded places will be secured by early April.

From September 2024, the department will provide working parents with 15 hours of free childcare a week from when their child is 9 months until they start school. This will increase to 30 hours from September 2025.

Delivering that ambition includes increasing childcare funding rates, with an additional £204 million in this financial year, an additional £400 million in the coming financial year and guaranteed uplifts in line with cost pressures for two years after that. The department is providing grants to help new childminders enter the sector and, to make it easier for the sector, making changes to the early years foundation stage to provide more flexibility.

The department hears every day from families how significant this policy will be for their finances. Once the roll-out is completed, eligible families will save up to £6,500 per year. The roll out will help parents to return to work or increase their hours, and tens of thousands of parents have already successfully applied for their codes, ready to take up their places in April. To see the full range of support they are entitled to, parents should visit: https://www.childcarechoices.gov.uk/.

Hundreds of thousands of children aged 3 and 4 are already registered for a 30-hour place, which can save eligible working parents up to £6,500 per child per year. Expanding this entitlement to younger children across the country will help even more working parents with the cost of childcare and make a real difference to the lives of those families.

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 £1,629 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.