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Commenting, Neil Leitch, CEO of the Early Years Alliance, said: 

"All families should be able to access quality, affordable care and early education for their children - and yet we know that high childcare costs remain a huge source of financial pressure for many parents across the country. 

"But let's be clear: it is the government's decision to continue to knowingly underfund the early years sector year upon year that has left settings with no choice but to increase fees and charges, or risk going out of business completely. Our two-year Freedom of Information battle with the Department for Education revealed that the government knew perfectly well that the introduction of the 30-hours offer alongside inadequate funding levels would lead to increased childcare costs, particularly for parents of younger children. 

"Nurseries, pre-schools and childminders are facing many of the same cost-of-living pressures – such as spiralling inflation and soaring energy prices – as the families they support, not to mention the impact of business rate hikes, minimum wages increases and national insurance contribution rises. With government funding for the sector still nowhere near what is needed to cover these costs, things are likely to get much worse before they get better. 

"As such, TUC is absolutely right to call for an urgent increase in early years funding. Only by investing what's needed in our vital sector will the government be able to ensure that all families are able to access the childcare and early education they need and deserve."