Alliance comments on Coram Family and Childcare childcare costs report

Commenting, Neil Leitch, chief executive of the Early Years Alliance, said: 

"The government says that it wants to support parents with the cost of childcare but as this report shows, by refusing to invest what's needed into the early years sector, it is actually making things worse for many families across the country.

"The fact is that childcare costs for under-twos are rising above the rate of inflation because childcare funding for so-called 'free entitlement' schemes isn't increasing anywhere near it.

"The sector has long warned that the growing childcare funding shortfall was likely to lead to increased costs for parents - and especially those with younger children who aren't eligible for government schemes - as struggling early years providers are forced to increase fees in order to plug an ever-widening funding gap.

"Every year, the cost of delivering childcare places gets more and more expensive, and yet government funding has consistently failed to keep up. In April, nurseries, pre-schools and childminders across England will see their staffing costs increase hugely as a result of national living and minimum wages rises of more than 6% - but the biggest increase in funding any provider is likely to see is 2%, and that's on the back of years of stagnant funding.

"Ministers cannot continue to ignore the impact that chronic childcare underfunding is having on both the early years sector and the chidren and families it promised to support. As such, with both the Budget and Spending Review on the horizon, we urge the government to commit to ensuring that 'free childcare' schemes are adequately funded, both now and in the future. Neither providers nor parents should have to pay for a pledge that the government chose to make."

Editor notes 
  • The Early Years Alliance is the largest and most representative early years membership organisation in England. A registered educational charity, it also provides high-quality affordable childcare and education to support children and families in areas of deprivation throughout the country.
  • The Alliance represents 14,000 members and supports them to deliver care and learning to more than 800,000 families every year. We deliver family learning projects, offer information and advice, produce specialist publications, run acclaimed training programmes and campaign to influence early years policy and practice.
  • The Alliance website is