Today (20 March) Coram Family and Childcare has published its 24th annual Childcare Survey, highlighting the state of childcare availability and cost in the UK. This is the first survey publication since the government’s expansion to funded early years entitlements for working families in England.
Childcare costs in England
In England, eligible families of children aged nine months to two-years-old have seen significantly lower costs thanks to the new funded offer. However, families who are not eligible for this due to their working status or income have to pay considerably more for the same provision (£105 more for a part-time nursery place for a child under two). Funded entitlements for three- and four-year-olds remain unchanged, and families of this age group have seen costs rise by 5%.
Sufficiency and availability in England
Whilst local authorities in England reported good levels of sufficiency for the funded entitlements, issues remain around availability of provision for some families. They reported gaps in provision for families with older children, parents and carers working atypical hours outside the 9am-5pm and provision for children with special educational needs and disability (SEND).
Cost and sufficiency in Wales
The survey compared the cost change for families accessing a part-time nursery place since 2024, finding on average a 9.7% increase for under-twos, 7% for two-year-olds and 5.6% for three-year-olds. As an example around funded hours, the survey stated that working parents of three- and four-year-olds in Wales are eligible for 30 hours of funded childcare a week during term time. If they need to pay for 20 extra hours to take this up to a full-time nursery place (50 hours a week), the average weekly cost to parents is £119.23 in Wales, a 5.6% increase.
The survey does highlight families in England and Wales accessing early education and childcare for under-fives in a childminding setting pay less on average than those in a nursery setting.
On sufficiency, 67% of local authorities reported sufficient places for at least three quarters of children entitled to the Flying Start offer, and 61% said the same for the working parent entitlement for three- and four-year-olds. Local authorities reported very low sufficiency for older school-aged children.
Helen Donohoe, Chief Executive at PACEY comments:
“The government’s expansion of childcare in England has helped lower costs for eligible families, easing financial pressures on these family budgets. This progress is worth celebrating, and we must recognise the early years providers who worked hard to deliver this support for families. However, a concerning and growing gap remains between those who are eligible for this support and those who are not. We know that families in deprived areas benefit most from access to high-quality, affordable childcare yet many are missing out. The government needs to rethink the system and move towards a fairer, universal offer to ensure that all families have equal access to early education.
“The report also highlights the value of childminders, who are too often overlooked in the early years and childcare sector. They provide an affordable and flexible option for families, particularly for those working atypical hours and those needed wraparound care for older children – two areas highlighted in the report as lacking. The smaller ratios and home-like environment often makes childminders an excellent choice for children with special educational needs and disabilities (SEND)/ additional learning needs (ALN) and the youngest children. Given this, it’s concerning that the number of childminder numbers in England and Wales continues to decline. Without urgent action from government, we face the extinction of childminders and families will lose out on this vital source of childcare and early education.”
PACEY’s Manifesto for Childminders highlights how the government must act urgently to reverse the childminder decline and put in place a joined up, long term strategy to address challenges facing this important part of the sector.
