Childcare costs have experienced a historic decline in England, marking the first drop in 15 years, according to findings from the children’s charity Coram. The reduction in costs comes as the government continues to implement its funded childcare scheme. This initiative aims to extend 30 hours of childcare per week to all eligible working parents with pre-school children, expanding beyond just three and four-year-olds as it currently stands.
Despite the positive impact of the scheme, some nurseries and childminders are expressing concerns about their ability to sustain their participation due to financial strains, including the mounting costs associated with National Insurance hikes from April. Education Secretary Bridget Phillipson emphasized the significance of the expanded childcare entitlements in addressing the needs of families.
Coram Family and Childcare’s annual survey reveals a notable shift in childcare costs for eligible working parents in England. While parents of children under three have access to 15 hours of government-funded childcare each week, the scheme has led to a 22% decrease in annual costs for those eligible. However, the survey also indicates an increase in prices for various childcare services across England, Wales, and Scotland.
The funding landscape for childcare is presenting challenges for providers, as demonstrated by the increasing financial pressures facing nurseries. Changes in National Insurance policies and other cost escalations are prompting establishments like The Children’s Garden Day Nursery in Stamford to consider limiting their government-funded places or even withdrawing from the scheme altogether. This dynamic has sparked concerns within the childcare sector, with concerns about the sustainability of nurseries’ operations and the potential impact on families in need of childcare services
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