Free childcare for two-year-olds is now available for parents in England. The government hopes the scheme will encourage parents to return to work. Parents who missed the deadline of 31 March will have to wait until September. The scheme will extend to all under-5s from late 2025. However, critics say there are not enough places to meet demand.
Extra help with childcare costs is being rolled out in stages in England. The hours of free childcare parents can receive depend on the age of the child and the parents’ financial situation. Parents are advised to apply before the start of the term when the child is eligible.
For the new hours, the majority of parents must earn more than £8,670, but less than £100,000 per year. For those on certain benefits, some free hours of childcare are already available.
Once approved, parents will receive a code to give to their registered childcare provider. Free childcare hours can be used over 38 weeks of the year, during school term time. However, if users of these hours require fewer hours per week, some providers may stretch them over 52 weeks of the year. The government is increasing the hourly rate it pays childcare providers for offering free hours. However, in many cases, this rate does not cover the full cost of childcare, so some providers charge for extras.
By the time the expanded scheme is fully rolled out in September 2025, demand for childcare places is likely to have risen 15%. According to Coram, fewer than a third of councils have enough spaces for under-twos. In response, the government is offering a cash incentive to those who become childminders. The Department for Education has yet to give figures for the number of people who have signed up.
In Scotland, Wales and Northern Ireland, different childcare schemes operate, but care must be delivered by officially registered providers. Parents may also be entitled to other support, including the UK-wide tax-free childcare scheme. For every £8 parents pay into an online childcare account, the government adds £2. Parents who are entitled to free childcare hours can also save in the tax-free scheme
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