London Daily

Focus on the big picture.
Thursday, Sep 04, 2025

Ministers ‘knowingly underfunding’ childcare sector in England

Ministers ‘knowingly underfunding’ childcare sector in England

Early Years Alliance investigation finds government is ‘shamelessly’ driving costs up and quality down
Ministers have been accused of “shamelessly, knowingly” underfunding the early years sector in England over the past decade, driving childcare costs up and quality down, after a two-year investigation by a body representing the sector.

Private government briefing documents uncovered during the investigation reveal that 2020-21 early years funding rates for the Conservatives’ free childcare offer for three- and four-year-olds are less than two-thirds of what the government believed was needed to fully fund the scheme, according to the Early Years Alliance (EYA).

The documents also show ministers were aware that insufficient investment would result in higher prices for parents of younger children, and that early years settings would be forced to maximise child-adult ratios – therefore lowering quality – to stay afloat, the EYA says.

The findings, described as “shocking” by Labour, follow a protracted two-year freedom of information dispute between the government and the EYA, and come as a petition calling for an independent review of childcare affordability and funding reached 100,000 signatures.

According to the EYA, one government briefing document reveals that in 2015 Department for Education (DfE) officials estimated that the cost of providing a government-funded early years place for a three- or four-year-old would be £7.49 an hour by 2020-21.

However, according to independent analysis provided by the childcare research agency Ceeda, the average early years funding rate given to local authorities in 2020-21 was £4.89, a £2.60 shortfall, equivalent to £2,964 over the course of a year for children in receipt of 30-hour funding.

The document, called Early Years Spending Review Scenarios and marked “official sensitive”, also acknowledged that the introduction of the Conservatives’ 30-hour policy was likely to result in price increases of as much as 30% for parents of young children where care was not covered by the free offer. This would make it too expensive for many to return to work, the EYA said.

The findings were published before the EYA’s annual conference on Tuesday, where the alliance’s chief executive, Neil Leitch, is expected to accuse the government of “shamelessly, knowingly underfunding our sector”.

“For years, the early years sector has warned that the so-called ‘free entitlement’ offer is anything but free, in the face of repeated government claims that the policy is adequately funded,” Leitch said. “These documents, which they spent more than two years trying to hide, prove otherwise.”

The DfE said the EYA data pre-dates increases to the rates paid by government, with additional investment announced by the chancellor in 2019 and 2020.

A spokesperson said: “We’ve made an unprecedented investment in childcare over the past decade, spending more than £3.5bn in each of the past three years on our free childcare offers and increasing the hourly rate paid to councils above inflation for the past two years.”

Tulip Siddiq, the shadow minister for children and early years, said: “Conservative ministers knew that they were dramatically underfunding early years and that this would drive up the cost of childcare whilst driving down quality. Yet they pushed ahead regardless.

“The government owes parents an apology for this reckless underfunding of early years and for covering it up. Ministers must now change their failed approach to early years, which must start with urgent action to prevent further childcare closures.”

Justine Roberts, the founder of Mumsnet, said: “Childcare provision in the UK is expensive to the point of being unusable for many families, meaning that mothers are often forced to take less skilled work or leave the labour force altogether.

“Forty per cent of Mumsnet users who use the 30 hours offer say they’ve been asked to pay additional or new charges for things such as lunches and nappies, and 77% of working mothers on Mumsnet don’t think the government does enough to support parents with the cost of childcare.”
Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Queen Camilla’s Teenage Courage: Fended Off Attempted Assault on London Train, New Biography Reveals
Scottish Brothers Set Record in Historic Pacific Row
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
×