The UK government has also recently announced an increase in the hourly rate paid to childcare providers who deliver free childcare hours. This historic step aims to provide working parents the care they need. Beginning in September, working parents of children at least nine months of age will be able to apply for free childcare. They are entitled to up to 30 hours per week in England. This new investment is intended to alleviate the childcare cost burden on families, creating an opportunity for enhanced workforce engagement.
In England, every three and four-year-old is entitled to 15 hours of government-funded childcare a week, regardless of whether their parents work or not. Parents can start to apply for these 15 hours as soon as the child is 23 weeks gestation. For the extended 30 hours of free childcare, the eligibility begins when a child is two years and 36 weeks old.
In order for these extra hours to be used, the majority of parents need to make more than £9,518 a year but under £100,000 a year. This income limit is intended to prevent waste, fraud, and abuse to ensure we target our support to those who need it most while being fiscally responsible.
The free hours can only be used part-time, over 38 weeks a year. For many of us, these weeks are an ideal match for the school year. Others of these childcare providers choose to adjust these hours over a full 12 months. This strategy provides more flexibility to parents that need to use fewer hours per week.
For all of the government’s good intentions, childcare has been an increasingly elusive prospect. The education regulator Ofsted highlighted that since 2020, availability has declined, and improvements have not been equitable across the country. This perfect storm has created a nightmare for parents just as they’ve started to return to normalcy following the pandemic.
In a recent survey, one in four parents, 23%, said they have difficulty affording free hours of government childcare. These problems stem from additional overage charges levied by providers. This fiscal impediment has spurred over 5,000 nurseries to act. As such, they’re calling on the Department for Education to postpone implementation of the new rules until these problems are addressed.
Parents will be able to redeem free hours on their child’s behalf. They will be able to access other forms of support, including the UK-wide tax-free childcare scheme. Under this plan, parents can increase their virtual childcare account. For every £8 they save, the government boosts it by an additional £2, with a maximum government contribution of £2,000 per child per year. Disabled children are eligible for a total of £4,000.
“We want to ensure no family is priced out” – Department for Education (DfE)
The government has shown their commitment to help would-be childminders succeed. They have introduced a £600 cash incentive for independent childminders and £1,200 for those who register through an agency. This incentive program ended in March.
As the government implements these changes, only time will tell how it will affect families and childcare providers. Many parents are hopeful that the increased funding for providers will enhance their ability to offer quality care while keeping costs manageable.
