Early years reform to cut costs and deliver on Plan for Change
Source: gov.uk (2025-02-21)

Parents to save cash through new guidance to prevent overcharging on childcare whilst £75 million will help deliver final phase of childcare rollout

Parents are set to save money on childcare thanks to new protections from additional charges on top of the government’s funded childcare offer, increasing access to high-quality early education and putting cash back into working families’ pockets.

To ensure no family is priced out of the support they need, the government has published updated guidance today that puts transparency at the heart of how the funded hours should be delivered, supporting local authorities to ensure providers make all additional charges - whether for nappies, wipes or lunch - clear and upfront to parents, and setting out that these charges must not be included as a condition for parents accessing their hours.

Giving every child the best start in life is central to the government’s mission to break the unfair link between background and success, and its Plan for Change to get tens of thousands more children a year school-ready by aged five.

As part of this, the government is committed to delivering on the promises made to working parents, so they can save up to £7,500 on average from using the full 30 hours a week of government funded childcare support, compared to paying for it themselves.

Education Secretary Bridget Phillipson said:

Giving every child the best start in life is my top priority, and integral to our mission to ensure tens of thousands more children are school ready every year.

That’s why despite the inherited challenges we face, we are pressing ahead with the investment and leadership needed to support families and make sure that every child, regardless of background, can access the high-quality early education they deserve.

Today marks an important step towards an early years system that is accessible for parents, sustainable for providers, and better serves children’s development.

This comes as the government has announced a targeted approach to its next tranche of early years funding to support the sector to deliver the new places needed for parents of children from nine months old looking to take up the entitlements for the first time.

Despite having to take tough decisions to fix the foundations of the economy, the government is increasing investment in early years to over £8 billion next year.

This includes a dedicated £75 million expansion grant, which will be targeted to providers supporting delivery of the expanded 30 hours of government-funded childcare in September, helping parents with children from nine months back into work and boosting household finances.

This means that private and voluntary providers, including childminders, are expected to see significant impact from a share of an average of around £500,000 in local areas. Funding allocations will vary between local authorities, reflecting local circumstances, with some of the largest areas seeing up to £2.1 million.

£75m is equivalent, on average, to an additional £80 per two-year old, and £110 per child under-two, though final amounts of funding reaching providers will depend on local circumstances.

The government also continues to make quick progress towards its Plan for Change milestone, with thousands of early years educators continuing to benefit from support networks and early maths training this year.

The Stronger Practice Hubs programme, which supports early years settings to deliver high-quality education by sharing knowledge and evidence-based approaches via 18 regional Hubs, has been funded for a further year.

On top of this, as part of wider work to deliver on the government’s commitment to boost early maths support for children, the Maths Champions programme delivery also launches this month – with up to 800 early years settings to benefit from the training this year.

Delivered in partnership with the National Day Nurseries Association and Education Endowment Foundation, an evaluation of the programme showed children in settings receiving the Maths Champions programme can make an average of three months’ additional progress in maths compared to their peers.

Educators in this year’s first cohort of 156 settings will take up the training this month, with spaces still available for sign-ups from March to June.

These programmes form part of wider vital work to drive high and rising standards across early education, offering improved early learning support and the training that educators need to prepare children for school.

The government will continue to work closely with parents and providers to deliver its ambitious reforms so that tens of thousands more children have the invaluable skills needed from communication and maths to personal, physical and social development to have the best possible life chances.

Lydia Hodges, head of Coram Family and Childcare, said:

We welcome the clarification in this update, which is something we have been calling for to address the high level of variation in childcare costs to parents. Our research shows that additional charges can be a major barrier to families - particularly disadvantaged families - taking up their funded early education entitlements.

Supporting childcare providers through these changes will be essential, to ensure the sector remains stable, but this updated guidance is an important step towards a transparent system that allows parents to make informed choices about their childcare options and enables all children to access their entitlements, particularly those who stand to benefit the most from high quality early education.

Emily Yeomans, Co-CEO of The Education Endowment Foundation, said:

Our independent evaluations of the Maths Champions programme have consistently shown its potential in establishing solid foundations in maths for young children. Crucially, this potential is even greater for children from socio-economically disadvantaged backgrounds.

A strong grounding in early maths is so important for setting up children for later success, acting as a fundamental enabler of later opportunity. So I’m delighted that we’re able to offer hundreds of early years settings access to the programme this year so that many more children can benefit.