Childcare costs for under 3s to go up after free childcare hours extended

While it’s great idea to double the free childcare hours given to kids aged 3-4, it could lead to soaring prices elsewhere, it’s been warned.

childcare costs  soar free hors

by Hayley Kadrou |
Published on

The number of free childcare hours designated to each three-four year old is set to increase from 15 – 30 hours per week, with the aim to have this policy set in nationwide by 2017.

And experts have warned it will have some negative repercussions, with a need to make up costs elsewhere.

The Pre-School Learning Alliance have told how, due to not enough funding being provided, fees elsewhere are likely to soar to even out the expenditure, despite the government saying they are investing £6bn into childcare.

childcare costs  soar free hors
childcare costs ©alamy

The alliance – which represents 14,000 childcare workers – outlined some of the problems they’re already facing.

With the currently implemented 15 hours free childcare, nurseries have already been asking parents to pay a higher rate for any extra time spend there. They predict that increasing fees for younger children is the only foreseeable way to enable the new scheme to run.

Speaking to the BBC, chief executive of the group, Neil Leitch, said:

"You don't need to be an accountant to work out that if you extend those 15 hours to 30 hours, you have a problem because you don't have the ability to cross-subsidise the fees.

"It's quite clear you'll have to make up that difference somewhere and I would suggest the money is likely to be made up from one and two-year-olds, as they don't have the same entitlement."

And Education and Childcare Minister, Sam Gyimah, responded by telling the BBC:

"This does not match what we're seeing on the ground and many providers want to work with us to trial our 30-hour free offer.

"We will be investing £6bn per year in childcare by the end of this Parliament so that we can offer hardworking families the affordable childcare they need."

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