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“England’s Largest Childcare Expansion Offers Savings But Raises Cost Concerns”

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Starting today, over 500,000 children will receive 30 hours of funded childcare weekly, offering significant savings for parents. This initiative represents the largest childcare expansion in England’s history. However, concerns have been raised as many families still encounter high childcare costs, especially if they fail to meet the income criteria for free childcare.

Research by Coram Family and Childcare reveals that families not qualifying for free childcare could face an additional £205 per week to provide nursery education for children under two. The disparity in government-funded early education between children of working parents and disadvantaged children is evident as the former receive three times more support before starting school.

As of this week, eligible families with children aged nine months to four years can access the 30-hour weekly childcare offer. To qualify, parents must earn above the national minimum wage but below £100,000 combined income. Those not meeting the eligibility criteria can still avail of the standard 15-hour entitlement for three and four-year-olds but may need to pay for extra hours.

For families of two-year-olds eligible for 15 funded hours, the cost to increase weekly hours to 30 varies depending on eligibility. Those qualifying pay an average of £100 per week, while those ineligible spend around £193 weekly. Similarly, parents of three- and four-year-olds, receiving 15 funded hours, may pay £96 per week for the additional 15 hours to match the early education received by children of working parents.

A study by Bath University highlights the potential for increased childcare costs in areas with high demand, termed “childcare deserts.” Concerns also arise regarding the capacity of nurseries to accommodate the surge in demand for free childcare. The National Foundation for Educational Research cautions that workforce challenges must be addressed to meet the staffing needs for the expanded childcare provision effectively.

While the current growth in staff numbers aligns with government targets, sustaining this progress may pose challenges. Early years providers have reported difficulties in achieving growth, raising doubts about meeting the required 35,000 staff increment by 2025. Calls for enhancing the status and pay of early years roles to attract and retain staff have been emphasized.

In response to the study, Lydia Hodges from Coram Family and Childcare stresses the importance of inclusive childcare policies to prevent further widening of the disadvantage gap. The government’s efforts to offer tax-free payments to early years teachers in disadvantaged areas aim to address staffing shortages and improve the quality of childcare services.

The Department for Education affirms its commitment to providing fair and accessible childcare, emphasizing the elimination of mandatory charges for accessing funded places. The government’s focus on simplifying the childcare system and supporting workforce growth underscores its dedication to ensuring every child receives quality early education.

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