Labour's 30 hours free childcare will not benefit the poorest families

On 1 September, the Labour Party government announced that it will now fund 30 hours of free childcare per week for eligible families. It claims that this fulfills pledges made to tackle the cost of childcare. However, experts have been quick to point out that not everybody will benefit from the increase.

Labour’s 30 hours free childcare

The government estimates that the savings will amount to £7,500 per year, per child. 29% of parents polled said that the support would allow them to work more hours. Likewise, the press release also claims that grandparents who would otherwise have to perform childcare will be able to step back from these daily duties.

Labour education secretary Bridget Phillipson said of the 30 hours free childcare:

Today shows what change looks like – mums, dads and carers with pounds back in their pockets, children getting the best start in life, and the British economy given a huge boost…

And this is just the beginning. My vision for early years goes beyond this milestone. I want access to high-quality early years for every single family that needs it, without strings and without unfair charges.

Polling has also shown that 9 in every 10 families secured a place at one of their top-three early learning providers. This uptake is mirrored in government funding for the sector rising to £9 billion for the coming year.

However, Kerry Papps, professor of economics at the University of Bradford, has issued a warning regarding this increased level of competition. He stated that rise in demand could “push up prices for unfunded hours, wiping out savings for families who need them most”.

Researchers from the University of Bath and the University of Bradford monitored nursery fees over the past 18 months. They found that fees rose fastest in areas which received the least government funding. In England, most of the funding available for children aged three and four was lower than the average hourly fee, with nurseries charging more to make up the difference.

Neglecting disadvantaged children

PM Keir Starmer said:

Launching 30 hours of free childcare is a promise made and a promise delivered. It’s a landmark moment for working families across the country, and a clear sign that our Plan for Change is not just words – it’s action.

However, herein lies the rub. That pesky little word is back, “working” families. It’s doing quite a lot of work here. Make no mistake, this policy is very much shaped around the perceived need to ensure that money isn’t flowing into the pockets of the ‘unworthy’, the non-working family.

Experts at the charity Coram Family and Childcare highlighted that the funding increase neglects disadvantaged children. This includes:

Children whose parents don’t meet the £9,518 earning threshold.

Children who have a terminally ill parent who can’t work.

Children with a parent who is still in training or education.

Children of migrants who don’t have access to public funds.

Children of disabled single parents.

The charity released a report which lays bare the failings of Labour’s funding expansion. It demonstrates that the gap in government provisions for children of working parents and disadvantaged children is only getting wider. Further, it claims that:

Families who are not in work, or who do not earn enough to be eligible, will need to pay if they want to give their child the same amount of early education in a nursery. Our data shows these costs average £205 per week for a child under the age of two, and between £100 and £193 per week for a two-year-old (depending on whether they are eligible for 15 funded hours for families in receipt of additional support).

Universal childcare

The Department of Education has pointed out that all 3- and 4-year-olds are entitled to 15 hours free childcare. 2-year-olds can also receive the same, provided that their parents are on a sufficiently low income.

So, it’s 30 hours of funding if your parents are in work, and 15 hours if your parents are too ill to work. Maybe one of the kids in nursery can help Labour out with the maths on that one, because something isn’t adding up.

In the meantime, Coram is calling for justice. The organization has two simple demands:

Immediate action to extend the working parent funded early education entitlements to children whose parents are in training or education, are migrants who meet the work criteria, or who are unable to work due to terminal illness.