University of Bath warns free childcare could push up nursery fees
Working parents across the country are now entitled to 30 hours of childcare per week
A study from the University of Bath warns parents hoping for relief from sky-high childcare bills may instead face higher costs.
The new research warns the Government’s flagship “free childcare” expansion is failing to keep pace with nursery fees and could make them worse in some areas.
In “childcare deserts”, where three or more children compete for every available place, the surge in demand from expanded entitlements risks driving up prices for the hours parents still pay for.
Working parents across the country are entitled to 30 hours of childcare per week starting from September, which the government say will save around £7,500 a year per family.
The scheme – which covers children from 9 months until reception – will support children to be ‘school-ready’.
Education Secretary, Bridget Phillipson, said:
“Giving every child the Best Start in Life is my number one priority, which is why we are delivering on our commitment to provide hundreds of thousands of children with 30 hours government-funded early education.
“Whether it’s to save up to £7,500 a year, support parents to get back to work or reduce the pressure on grandparents who so often have to step in, the benefits are widespread."
But researchers at the University of Bath have found a funding gap for older children, with nurseries forced to charge more for other age groups.
The study also found sharp regional divides with London remaining the most expensive, followed by the South East and the South West.
Lead researcher Dr Joanna Clifton-Sprigg, University of Bath, said:
“Free childcare is a bold and welcome move but without funding that reflects real costs, it risks falling short. Where funding is lower, we’re seeing faster price rises for the hours parents pay for - a pattern that could deepen regional inequalities.”