Alliance calls for early years funding review as childcare costs continue to rise

19th February 2015

The Pre-school Learning Alliance has called for a fundamental review of early years funding as a new report warns that the cost of part-time childcare for a child under-two has risen by a third since 2010.

Speaking on Thursday 19 February at the Working together to deliver the early years agenda event - which is being co-hosted by the Pre-school Learning Alliance and Deputy Prime Minister Nick Clegg - Neil Leitch, chief executive of the Alliance, will call on the government to:

  • undertake a full, in-depth review of the free entitlement funding system, including a large-scale analysis of the cost of delivering funding places
  • undertake an annual review of local funding levels and how they compare to the cost of delivering places
  • protect free entitlement funding, ensuring that it is passed on in full to the frontline

According to the Family and Childcare Trust鈥檚 annual childcare cost survey, the cost of a part-time nursery place for a child under two has increased by 33% since 2010, and 5.1% since 2014.

Last year, the Alliance warned that that childcare costs could rise after an independent study commissioned by the charity revealed that government funding only covers the cost of four out of every five children accessing free early education places.

Neil says:

鈥淚t is concerning, but unfortunately unsurprising, to see that childcare costs are continuing to rise.

鈥淔or many years now, government funding for the free entitlement schemes for two-, three- and four-year-olds has failed to meet the cost of the providing these places, leaving childcare providers to make up the shortfall. As a result, many providers have been forced to increase the cost of paid-for hours just to stay afloat.

鈥淭he Alliance has long warned that a failure to address this shortfall would lead to cost rises, but the Department for Education has consistently chosen to ignore this problem. Clearly, this cannot continue.

鈥淭hat鈥檚 why we are calling for a full, in-depth review of the free entitlement funding system, looking specifically at how current funding rates compare to the actual cost of delivering 鈥榝ree鈥 childcare places.

鈥淣either parents nor providers should have to pay for a scheme that the government claims to be funding. The Department for Education simply must face up to this issue and commit to ensuring that the sector is properly funded in the long term.鈥

For further information, please

_____________________________________________________________________________________________________________________________

Notes for editors

  1. The Pre-school Learning Alliance is the largest voluntary sector provider of quality affordable childcare and education in England.
  2. Through direct provision and its membership of 14,000 nurseries, sessional pre-schools and parent and toddler groups, the Alliance supports over 800,000 children and their families in England. The Alliance also develops and runs family learning programmes, offers information and advice, runs acclaimed training and accreditation programmes and campaigns to influence early years policy and practice.
  3. For information about the Pre-school Learning Alliance, visit our website:

More press releases