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Select Committee

Institute for Apprenticeships and Technical Education, and Institute for Apprenticeships and Technical Education

Oral Evidence Apr. 30 2024

Inquiry: Skills for the future: apprenticeships and training
Inquiry Status: Closed
Committee: Industry and Regulators Committee

Found: Institute for Apprenticeships and Technical Education, and Institute for Apprenticeships and Technical

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Select Committee

Disabled Children’s Partnership, National Network of Parent Carer Forums, and Kids

Oral Evidence Apr. 30 2024

Inquiry: Children’s social care
Inquiry Status: Closed
Committee: Education Committee (Department: Department for Education)

Found: Disabled Children’s Partnership, National Network of Parent Carer Forums, and Kids Oral Evidence

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Written Question

Childcare: Costs

Tuesday 30th April 2024

Asked by: Rachael Maskell (Labour (Co-op) - York Central)

Question to the Department for Education:

To ask the Secretary of State for Education, what steps she is taking to ensure that the cost of childcare is affordable for single parent families.

Answered by David Johnston - Parliamentary Under-Secretary (Department for Education)

The department is providing over £4.1 billion by the 2027/28 financial year to fund 30 hours of free childcare per week (38 weeks per year) for working parents with children aged 9 months to 3 years in England. This will remove one of the biggest barriers to parents working by vastly increasing the amount of free childcare that working families can access. This is set to save working families using the full 30 funded hours up to £6,900 per year from when their child is nine months until they are five years old by September next year.

Already, hundreds of thousands of children aged 3 and 4 are registered for a 30-hour place, which can save eligible working parents up to £6,000 per child per year. Expanding this entitlement will help even more eligible working parents with the cost of childcare and make a real difference to the lives of those families.

To be eligible for the expanded 30 hours entitlement, as with the current 30 hours offer, parents will need to earn the equivalent of 16 hours a week at national minimum wage or living wage (£183 per week/ £9,518 per year in 2024/2025), and less than £100,000 adjusted net income per year. For families with two parents, both must be working to meet the criteria, unless one is receiving certain benefits. In a single-parent household, the single parent must meet the threshold. This offer aims to support parents to return to work or to work more hours if they wish.

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 £1630 for two children.

Tax-Free Childcare remains available for working parents of children aged 0 to 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.

The department is committed to improving the cost, choice, and availability of childcare and government funding schemes are designed to be flexible enough to support families’ different situations.

For the 2024/25 financial year, the department’s funding rates for the York local authority will be £10.30 per hour for under 2s, £7.59 per hour for the 2 year old entitlements and £5.20 per hour for 3 and 4 year olds.

The government is also investing £289 million in a new wraparound childcare programme. The government’s ambition is for all parents of primary school children who need it to be able to access childcare in their local area from 8am to 6pm. Parents will still be expected to pay to access this provision, but support will be available to eligible parents through Universal Credit childcare and Tax-Free Childcare.

Parents should expect to see an expansion in the availability of wraparound care from September 2024, with every parent who needs it able to access term-time wraparound childcare by September 2026. The department is also providing over £200 million a year for the continuation of the Holiday Activities and Food programme and the department is investing a transformational £560 million in youth services in England over the next 3 years. This is part of a wider package the government has provided long term, to support young people facing the greatest challenges.

The department will also continue to monitor the sufficiency of childcare places across the sector. The department’s Childcare and Early Years Provider Survey shows that both the number of places available and the workforce has increased since 2022.

Local authorities are responsible for ensuring that the provision of childcare is sufficient to meet the requirements of parents in their area. Where local authorities report sufficiency challenges, the department discusses what action the local authority is taking to address those issues and where needed support the local authority with any specific requirements through our childcare sufficiency support contract.

The department has regular contact with each local authority in England about their sufficiency of childcare and any issues they are facing.

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