Question to the Department for Education:

To ask the Secretary of State for Education, what steps she is taking with Cabinet colleagues to help improve the affordability of childcare.

Answered by Olivia Bailey - Parliamentary Under-Secretary of State (Department for Education) (Equalities)

We want all children, regardless of background, to have access to high quality early education and childcare. This allows parents to work and supports children’s development as they grow, getting them ready for school and beyond.

Through our Best Start in Life strategy we will improve access to early years education and childcare.

It is important that government childcare entitlements remain accessible and affordable for families. Earlier this year we updated the existing statutory guidance for local authorities to clarify the section on additional charges and to support transparency and consistency for parents and providers.

Local authorities also have duties under section 7 of the 2006 Act and under the Childcare (Free of Charge for Working Parents) (England) Regulations 2022 to ensure free childcare is available to eligible children in their area (for either 30 or 15 hours per week over 38 weeks per year depending on the entitlement). To do this, local authorities have the key role of managing their local markets to ensure they meet the needs of parents.

In 2025/26 alone, this government plans to spend over £8 billion on early years entitlements, increasing to over £9 billion in 2026/27 and we have increased the early years pupil premium by over 45%. On top of this, we have provided further supplementary funding of £75 million for the Early Years Expansion Grant to help providers meet their local demand. The EYNFFs target funding to local authorities where it is needed most, reflecting the relative needs of the children and costs of delivering provision in that area.

We increased core funding rates for 2025 to 2026. This increase ensured funding for the entitlement’s forecasts of average earnings and inflation and also reflected the National Living Wage announced at the 2024 Autumn Budget.

In addition to childcare entitlements, the Universal Credit childcare offer supports claimants with the costs of childcare, no matter how many hours they work. Claimants may be able to claim up to 85% of eligible childcare costs, for children aged up until the 31 August after their 16th birthday, if they are eligible for Universal Credit and are usually in paid work or starting a job in the next month. Claimants may also be eligible for help with certain costs of childcare if they are on sick leave, or maternity, paternity or adoption leave.

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 government-funded childcare.