Education Secretary Bridget Phillipson will reportedly call for families on benefits to be given 30 free hours of childcare a week in a speech today, arguing that the current system excludes those who need support most.
Current system excludes low-income families
Under the current UK system, only parents who are both working are usually entitled to the free childcare, which covers nursery places for children aged nine months to four years. Phillipson warns that families not in work are missing out, creating a cycle where they cannot afford childcare and cannot work because of it.
The Department for Education (DfE) estimates more than 500,000 families now benefit from funded hours. However, the education secretary says around half of all children from low-income families are missing out on formal childcare and early years education.
Cost and economic case
The current childcare scheme in England is projected to cost the taxpayer about £8 billion a year by 2028. Researchers suggest a universal childcare offer could cost up to £15 billion but would boost the economy by helping parents on benefits return to work, according to The Times.
In her speech in Oxford, Phillipson will argue there is a compelling social and economic case for a universal early years offer. She says: "We know that around half of all children from low-income families are missing out on formal childcare and early years. There are families out there who can't afford quality childcare because they aren't working, and they struggle to work because they can't afford quality childcare. So their children miss out on quality early years education. Where's the sense in that?"
Extended support would foster inclusion
Phillipson adds: "By extending government-funded childcare into these communities, not only would we be supporting parents into work, not only would we be supporting disadvantaged children with quality early years, but we would no longer be cutting off these families from society, no longer fostering disengagement and detachment. That's a big opportunity that we must be bold enough to take."
Current eligibility rules
Since September 2025, all eligible families with children aged nine months to four years can access 30 hours of free childcare a week. For children aged nine months to two years, parents must earn the equivalent of the national minimum wage for 16 hours a week on average, but less than £100,000 a year, to qualify. All parents of three- and four-year-olds are entitled to 15 free hours a week regardless of work status, while working parents can claim the full 30 hours if they meet earnings criteria.
