Childcare: Fees and Charges

(asked on 2nd June 2023) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, whether she has made an assessment of the potential merits of extending the criteria for 30 hours free childcare to children at risk regardless of their parents' employment status.


Answered by
Claire Coutinho Portrait
Claire Coutinho
Secretary of State for Energy Security and Net Zero
This question was answered on 12th June 2023

In the Spring Budget 2023, my right hon. Friend, the Chancellor of the Exchequer, announced transformative reforms to childcare 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 government’s 30 hours free childcare entitlement is intended to encourage parents back into work, or to take on additional hours, by helping them with childcare costs. Therefore, it is available to parents who earn at least the equivalent of 16 hours per week at National Minimum or Living Wage (currently just over £167 per week, or £8,670 per year), and less than £100,000 adjusted net income per year.

In a two-parent family, both parents must meet these thresholds, unless one partner receives certain benefits, such as Incapacity Benefit, Severe Disablement Allowance, Carer’s Allowance or contribution-based Employment and Support Allowance. In a single-parent household the single parent must meet the thresholds.

Parents who are unable to meet the income thresholds for 30 hours free childcare remain eligible for the universal entitlement to 15 hours free early education. This is available for all three and four-year-olds regardless of their family circumstances, and supports children’s development, helping prepare them for school.

Working parents on low incomes and in receipt of certain benefits (earning less than £15,400 and receiving Universal Credit or earning less than £16,190 and receiving tax credits), as well as disadvantaged children, including those with education, health and care plans and looked after children, can qualify for 15 hours free early education for two-year-olds.

Outside of the early education entitlements, working parents on Universal Credit may also be eligible for help with up to 85% of their childcare costs through Universal Credit Childcare for children aged 0 to16, up to £646 for one child and £1,108 for two or more children.

The department continues to support the most disadvantaged and vulnerable children by investing in high-quality early education, family hubs and local services, and by helping parents to support their child’s early language development at home.

In future, working parents will be able to access 30 hours of free childcare a week for 38 weeks a year from the point their child is 9 months, to when their child starts school. This offer will be rolled out in phases from April 2024 to September 2025. The department is ensuring a phased implementation of the expansion to the 30 hours offer to allow the market to develop the necessary capacity, and we are working closely with the sector on the implementation of these reforms.

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