Expansion of free childcare welcomed, but funding insufficiencies highlighted

Childcare providers in London are sounding the alarm over the government’s plan to extend free nursery hours for two-year-olds, fearing that insufficient funding could jeopardize their ability to cover operational costs. The initiative, set to kick off in April, aims to provide working parents of two-year-olds with 15 hours of free childcare per week, a move welcomed by parents but met with scepticism by nursery operators.

June O’Sullivan of the London Early Years Foundation, representing 40 nurseries across the capital, expressed support for the expansion of free childcare but criticized the government’s funding model as flawed. “The concept of ‘free’ childcare is misleading, as it’s essentially government-funded, and the financial support provided is inadequate,” O’Sullivan noted, highlighting the financial strain nurseries face in delivering these services.

The initiative comes as a relief to parents like Sian Aiken, who anticipates the partially-funded childcare place for her two-year-old son will ease their family’s cost of living pressures. “Having that bit more in my pocket will definitely make life more comfortable,” Aiken said, underlining the personal financial benefits of the scheme.

However, Merita Selaci, manager of the Marsham Street Nursery in central London, pointed out that the early years sector is grappling with a staffing “crisis,” exacerbated by recruitment and retention challenges amid rising living costs. The difficulty in maintaining a stable workforce threatens the sector’s ability to meet the demand for expanded childcare hours.

The Department for Education remains optimistic about the childcare market’s capacity to handle this significant expansion, citing interest from providers in increasing their placements. According to the department, independent analysis by the Institute for Fiscal Studies indicates that the average funding rates for the youngest children will be considerably higher than last year’s market rates. Furthermore, the government has pledged additional funding increases for providers over the next two years, supported by an estimated £500 million investment.

To be eligible for the new free childcare hours, most parents must earn between £8,670 and £100,000 annually. The scheme is part of a broader government initiative to introduce 30 hours of free childcare for all under-5s by September 2025, building on the existing provision for three and four-year-olds.

As the plan rolls out, the dialogue between childcare providers and the government is crucial in addressing funding and staffing concerns to ensure that the expansion of free childcare effectively supports both families and the early years education sector.