Question to the Department for Education:

To ask the Secretary of State for Education, whether her Department has made an assessment of the potential merits of allowing parents to transfer free childcare allowances for the care of children currently ineligible for free childcare.

Parents can benefit from the government’s current range of childcare offers, which includes the free early education entitlements, as well as Tax-Free Childcare and Universal Credit Childcare.

The free early education entitlements apply to childcare places taken up by a child who is within the correct eligibility age range for each offer.

• All parents of 3 and 4-year-old children can benefit from 15 hours per week over 38 weeks of the year of free early education, regardless of family circumstances. This helps children to develop social skills and prepare them for school.
• Working parents on low incomes and in receipt of certain benefits can qualify for 15 hours per week over 38 weeks of the year of free early education for 2-year-olds. This significantly improves the educational attainment of these children.
• Eligible working parents of 3 and 4-year-olds are entitled to an additional 15 hours (30 hours) of free childcare per week over 38 weeks a year. The 30 hours offer aims to support working families with the cost of childcare, and to support parents back into work, or to work more hours should they wish to.

In addition to the entitlements, Tax-Free Childcare and Universal Credit Childcare can be used to pay costs associated with care of children in their early years, as well as those of school age.

Tax-Free Childcare is available for working parents of children aged 0-11, or up to 17 for eligible disabled children. This has the same income criteria as 30 hours free childcare and can be used to pay for childcare of children who fall within the eligible age range.

Low-income families who are in receipt of Universal Credit, and find that they are ineligible for Tax-Free Childcare, can have 85% of their childcare costs covered under the Universal Credit Childcare offer. This offer can be used to cover costs associated with childcare taken up at nurseries, preschools, after-school clubs, breakfast clubs, childminders, nannies and holiday clubs.

In the 2023 Spring Budget, the government announced a number of transformative reforms to childcare for parents, children, and the economy. This includes the expansion of the 30 hours free childcare offer where eligible working parents in England will be able to access 30 hours of free childcare per week for 38 weeks per year from when their child is 9 months old to when they start school.

Further information on the support available to parents can be found at: https://www.childcarechoices.gov.uk/.