Free Childcare Hours Expand, but Nurseries Warn of Staffing and Space Crisis
Government funding increases aim to support families, but nursery owners say low pay, staff shortages, and rising demand could leave parents with entitlement codes but no available places.
From September 2025, working families in England will be entitled to 30 hours of government-funded childcare per week for children as young as nine months. The Department for Education has pledged additional support, including a £75 million grant this summer and the creation of around 4,000 new school-based nursery places, in an effort to meet rising demand.
But nursery owners warn the expansion may not be deliverable. Helen Hazel, owner and manager of the Olive Tree Nursery in Somerset, says her setting is already struggling with numbers and staffing.
“Funding doesn’t cover costs and there aren’t enough staff in the sector, leaving parents with codes but no spaces,” Hazel told us.
She also highlighted safety concerns, saying: “I won’t compromise the children’s safety by increasing numbers, not enabling them to manage food allergies and children’s needs adequately, which could lead to situations I would not risk putting my children or my staff in.”
Hazel described the wider pressures on early years providers. Nurseries often act as a band-aid for other overstretched services, including health visiting and social care. She detailed the extra work her staff undertakes, from physiotherapy and speech therapy interventions for children with SEND to liaising with housing associations and benefits offices.
The nursery sector is also facing a recruitment crisis. Hazel explained that many staff who trained for three to four years are no longer considered fully qualified under Department for Education rules, limiting the pool of available professionals. Pay remains a major issue, with most nursery staff earning minimum wage or slightly above. Hazel says the current funding does not allow her to offer higher salaries, despite increasing responsibilities and rising costs.
The Department for Education has been approached for comment on these concerns.
While the government emphasizes the expansion’s benefits for parents, nursery owners warn that without adequate funding and staffing, the rollout risks creating “childcare deserts”, where families hold entitlement codes but cannot find a place for their children. Hazel summed up the challenge: “Parents think they’ve got this golden ticket, but the places just aren’t there. We’re being asked to do more for less – it’s unsustainable.”