Question to the Department for Education:

To ask the Secretary of State for Education, what steps she is taking to assess the potential impact of the cost of childcare on parental income.

Childcare is a vital enabler for parents to work. That is why the department has announced a number of wide-ranging childcare measures to support parents to return and stay in work. This will be transformative for parents, children and the economy.

By 2027/28, the government will expect to be spending in excess of £8 billion every year on free hours and early education, helping working families with their childcare costs. This represents the single biggest investment in childcare in England ever.

The department will also be providing over £4.1 billion by 2027/28 to fund 30 hours of free childcare per week (38 weeks per year) for working parents with children aged 9 months and above in England, from the term after they reach the relevant age (£1.7 billion in 2024/25, £3.3 billion in 2025/26, £4.1 billion in 2026/27, and £4.1 billion in 2027/28). Additionally, hundreds of thousands of children aged 3 and 4 are registered for a 30-hour place, saving eligible working parents up to £6,500 per child per year, helping even more working parents and making a real difference to the lives of those families.

Taken together this will make sure the system is sustainable, and where parents do need to pay directly for childcare, it is not at an inflated rate. Parents on Universal Credit now have access to higher caps in the amount they can claim back for childcare, and payments are upfront rather than backdated. Working families can also access support with the childcare costs through Tax Free Childcare worth up to £2,000 per year for children aged up to 11 years old, or £4,000 per year for children with disabilities aged up to 17 years old.

The Office for Budget Responsibility believes that this policy will have a significant impact, estimating that 60,000 more parents will enter the workforce as a result of this policy, while many will increase their hours.