A new report from Coram Family and Childcare shows early years settings in England are asking families to pay additional charges for disadvantaged children.
For the past ten years, disadvantaged two-year olds have been entitled to up to 15 hours of government-funded childcare, however a new report, funded by the Nuffield Foundation shows a ‘substantial minority’ of children are still missing out.
The report said: ‘While some providers make inclusive free provision a priority, it now appears common practice (although not universal) for settings to constrain the number and structure of funded places offered and to ask families to pay additional charges for their entitlement.
‘A two-tier system of provision is emerging in some cases, which, at its most extreme, is inferior and stigmatising for parents accessing the disadvantaged two-year-old entitlement.’
For example, some children who access funded-only places are kept in separate rooms from children of the same age whose families pay extra.
Other key issues highlighted within the report include:
The rollout of offering funded childcare for working parents began in April this year – parents of children older than nine months can access 15 hours of funded childcare, before the introduction of 30 hours a week to all eligible families in September 2025.
Prior to the 2025 deadline, experts are calling for major reforms. A selection can be found below.
Lydia Hodges, head of Coram Family and Childcare
‘At a time when childcare seems to rarely be out of the spotlight, these findings show that children who may benefit the most from early education are often missing out.
‘Right now, disadvantaged children are entitled to only half the hours of funded early education that children with working parents get, and at a later age. We have to ask ourselves if this is what we want for our children.
‘Childcare is important for enabling families to work, but going to nursery isn’t just about childcare, it’s early education too.
‘The government has recognised that in their commitment to breaking down barriers to opportunity for every child, and their ambition to boost the number of children reaching their early learning goals. To do that, the funded entitlement must be accessible to all children.’
Neil Leitch, chief executive of the Early Years Alliance
‘We know that access to early education has a proven impact on a child’s development and life chances, particularly for children from more deprived backgrounds – and yet, as these findings show, many disadvantaged families continue to face an unnecessarily complex and confusing system which is making it increasingly difficult for them to access early years places.
‘Add to this the fact that continued underfunding for the three- and four-year-old offer is still leaving many providers with no option to increase fees and additional charges, and it’s clear that the current approach to early years policy is at risk of failing those families most in need of support.’
Arooj Shah, chair of the Local Government Association’s children and young people board
‘We share the concerns that disadvantaged children may be missing out on the funded early education and childcare offer, given the current focus on working families.
‘Councils also have significant concerns around capacity and workforce challenges to properly support providers and ensure parents and children are getting access to the right care and education.
‘It is vital councils are recognised as the strategic leaders in this sector and equipped with the tools, levers and resources—supported by updated guidance and legislation—to strengthen the early years system for the benefit of all families.’
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