Childcare: Fees and Charges
The question
To ask the Secretary of State for Education, with reference to her Department's press release entitled Over half a million children to benefit from funded childcare, published 1 September 2025, whether she has made an estimate on the average additional number of hours worked this will result in; and if she will make an estimate of the total (i) economic value and (ii) cost to the public purse of the policy.
Answered by Olivia Bailey
It is the department’s ambition that all families have access to high quality, affordable and flexible early education and care, improving opportunity for every child and work choices for every parent.
From 1 September, eligible working parents of children aged nine months and older are now benefiting from 30 hours of funded childcare. Reaching this milestone means hundreds of thousands of families are better able to balance work and family life.
Central estimates for the financial benefits of extending early years education and childcare entitlements were published in April 2024 by the National Audit Office, which indicate, as of March 2024, a benefit-to-cost ratio of £1.26:£1.00, and a total estimated benefit of £15.972 billion, based on a total estimated cost of £12.723 billion.
The Office for Budget Responsibility also estimated that 60,000 additional parents will enter work, and 1.5 million will increase their working hours by 2027/28, as a result of the policy.
Now the programme is in live delivery, the department will continue to monitor how these estimated benefits develop throughout the programme.
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