First phase of the biggest ever expansion of childcare starts giving working parents of two-year-olds access to 15 hours a week

Parents to Save Thousands in Childcare Cost with New Taxpayer Funding
Parents to Save Thousands in Childcare Cost with New Taxpayer Funding

Thousands of parents of two-year-olds across the country are getting help with their childcare costs as the first phase of the biggest ever expansion in childcare starts.

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In this first stage, working parents of two-year-olds are now able to access 15 hours a week of taxpayer-funded childcare from 1 April.

The rollout of support is part of the government’s plan to help families – freeing thousands of couples from having to choose between having a family and a career, as over 150,000 children are on track to secure taxpayer-funded places from this week.

By September 2025 the full rollout will be completed, with working parents able to access 30 hours from the end of maternity leave to when their child starts school, saving parents an average of £6900 per year.

The government has supported the sector to deliver this expansion with taxpayer funding by increasing the number of staff and places, introducing measures to boost the recruitment and retention of childminders, launching a major national recruitment campaign and providing over £400 million of additional taxpayer investment to uplift funding rates in 2024-25. On top of this, the government will increase rates over the next two years by an estimated £500 million, the Chancellor confirmed at the Spring Budget.

The government is confident that the childcare sector is ready to deliver the offer and make sure parents have the childcare they need. The taxpayer is funding a higher rate per place than parents would pay at the market rate for the new entitlements – as independently reported by the Institute for Fiscal Studies.

Prime Minister Rishi Sunak said:

 Education Secretary Gillian Keegan said:

The largest ever expansion in childcare is just one part of the government’s long-term plan to give working families a brighter future, with other taxpayers' money. Businesses across the country have welcomed the historic expansion which will support them to grow.

Jane Gratton, Deputy Director Public Policy at the British Chambers of Commerce said:   

Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said:

Parents like Jennifer – who has been using two of the government childcare support schemes to help her family with the costs of childcare – will benefit. Jennifer is already using tax-free childcare, and will now also start using the 15 hours of taxpayer-funded childcare for her two-year-old.

She said:

Applications for the first stage of the rollout from April are now closed, but parents who have already registered can continue to take up places from April.

The number of parents taking up places is expected to continue to grow by tens of thousands over the coming weeks, and the government is expected to provide a formal update on take-up in the middle of April.

Chris McCandless, CEO, Busy Bees Europe, said:

Jo Turley, Managing Director, Ashbourne Day Nurseries, said:

Justine Roberts, Founder and CEO of Mumsnet, said:

All parents are being encouraged to check their eligibility at https://www.childcarechoices.gov.uk for the September phase of the rollout, and to act now to secure their place for September if they have a preferred provider.