A record 1.7 million children in England received free childcare hours in January 2025, marking a 33% increase over the preceding 12 months.
Since the expansion of free childcare in September to include qualifying children aged nine months to two years, over 450,000 have been registered. However, critics emphasize the continued need for additional staff and available places.
Free childcare provisions differ across the UK.
The average cost of full-time nursery care (50 hours per week) for a child under two in England stands at £12,425 in 2025.
This represents a 22% decrease from 2024, according to the Coram Family and Childcare charity, reflecting the recent expansion of government-funded hours.
Wales is the most expensive region in Great Britain for under-twos, with an average annual cost of £15,038.
Conversely, the cost of full-time care for three and four-year-olds has risen in England, Scotland, and Wales.
In England, all three and four-year-olds are eligible for 15 hours of government-funded childcare, regardless of their parents’ employment status.
Additional support is available, contingent upon the child’s age and the parents’ employment status or receipt of specific benefits.
Working parents may be eligible for:
To qualify for these hours, the majority of parents must earn above £9,518 annually, but less than £100,000.
Those receiving certain benefits may be eligible for:
Non-working parents may still qualify for 30 hours of free childcare if their partner is employed or if they receive certain benefits, such as being on maternity or paternity leave.
Currently, parents can apply for:
Entitlement begins at the start of the term following the child reaching the qualifying age.
The government website provides detailed information on application deadlines for each age group.
Parents of children who will benefit from the expansion from 15 to 30 hours for children aged between nine months and 23 months in September can apply now.
Free childcare hours are designed for use over 38 weeks of the year, aligning with the school term.
However, some providers offer the option to stretch these hours over 52 weeks by reducing the number of hours used per week.
The government has increased the hourly rate paid to childcare providers offering free hours.
Despite this increase, the rate often does not fully cover the cost of childcare, and some providers charge for supplementary items, such as meals, nappies, sunscreen, or excursions.
Research from the Pregnant Then Screwed charity indicates that nearly a quarter (23%) of surveyed parents reported being unable to afford free childcare hours due to these top-up fees.
In February 2025, the Department for Education (DfE) advised nurseries that parents should have the option to decline paying for these extras “to ensure no family is priced out.”
However, some providers state that these payments help subsidize the cost of free hours for three and four-year-olds.
Over 5,000 nurseries signed an open letter to the DfE requesting a delay in the implementation of the new opt-out rules.
The DfE estimates that an additional 35,000 staff and 70,000 places will be needed to meet the anticipated demand by September 2025, coinciding with a further increase in free hours.
Between 2023 and 2024, the number of childcare places increased by 44,400, according to DfE figures.
Ofsted, the education regulator, has cautioned that the distribution of these places is uneven across the country.
The number of childminders – individuals providing early years care in private homes – has decreased.
A government scheme offering new childminders a cash incentive of £600 or £1,200 concluded in March.
On average, areas identified as “childcare deserts” tend to have lower household incomes and higher levels of deprivation compared to other regions.
Early years charities have expressed concern over recent DfE figures showing a decrease in the proportion of two-year-olds from disadvantaged backgrounds receiving free hours, down from 75% in 2024 to 65% in 2025.
The DfE has stated that some families have been incorrectly recorded in the statistics, urging caution in interpreting these figures.
Education Secretary Bridget Phillipson has asserted that early years has been her “priority from day one.” However, nursery operators contend that the government’s updated funding rates for 2025 do not adequately offset their rising energy and staffing costs.
The Early Years Alliance charity reported that approximately 185 out of 1,100 surveyed nurseries stated they were “likely” to withdraw from the scheme within the next 12 months “due to unsustainable financial pressures.”
In April, the government announced the initial 300 school-based nurseries, projected to provide an additional 4,000 places by September 2025.
Scotland
All three and four-year-olds and some two-year-olds are entitled to 30 hours per week of funded childcare during term time (or 22 hours per week if used across the year), irrespective of their parents’ employment status.
Wales
Eligible parents can access 30 hours of childcare for three and four-year-olds, with the government indicating plans to expand support for two-year-olds.
Northern Ireland
The Northern Ireland Childcare Subsidy Scheme (NICSS) provides a 15% discount on childcare for eligible working parents with pre-school-age children.
The scheme will be extended to include primary school-age children from September.
Parents may be eligible for other forms of support, including the UK-wide tax-free childcare scheme.
For every £8 deposited into an online childcare account, the government contributes £2 (up to £2,000 per child annually, or £4,000 for disabled children).
These funds can be used to pay for approved childcare, such as:
The childcare provider must be registered with the scheme.
Parents who qualify for free childcare hours are also eligible to participate in the tax-free childcare scheme.
Research by children’s charity Coram finds that some areas have experienced price increases of up to 13%.
UK Inflation has receded from record highs but remains above the Bank of England’s 2% target.
The report also highlights that a key challenge is not only high prices, but also the ability of individuals to afford them.
One council has announced a temporary pause on new applications for three weeks to manage a waiting list.
While food and clothing prices rose at an accelerated rate, the marginal decrease in fuel prices contributed to maintaining the overall rate of inflation.