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The 30-hours free childcare scheme is likely to be more beneficial for higher income families than those living on the minimum wage, a new report has claimed.

 

According to the report from Centreforum – “Widening the gap? The impact of the 30-hour entitlement on early years education and childcare” – two-parent families earning £19,000 per year will likely receive 20% less childcare subsidy for their three-to-four-year-olds than two-parent families with annual earnings of £100,000.

 

Despite being potentially eligible, approximately 85% of parents do not claim the childcare element of working tax credit. The study says that this is either because low income parents are unable to pay the 30% contribution required, or due to the complexity of the system.

 

It also raised concerns over the level of quality, which stated that the roll-out of the universal childcare entitlement in the early 2000s did not have a lasting impact on children’s outcomes.

 

Consequently, the study believes that extending the entitlement to 30-hours per week is unlikely to exacerbate the current strain on quality, given that the existing funding rates do not allow for investment in quality.

 

Neil Leitch, chief executive at the Pre-school Learning Alliance, said he shares the concerns raised in the report.

 

“The report rightly highlights that children from more deprived backgrounds – who are arguably most in need of greater access to high-quality early education and care – are likely to benefit the least from current childcare policy,” he said.

 

“This, in our view, is a direct consequence of the government’s decision to focus on getting parents back to work over and above ensuring that all children get the best possible start in life, an approach that completely contradicts its commitment to ‘closing the gap’ and ‘increasing the life chances of the most disadvantaged’ in the early years.”

 

David Laws, executive chairman at Centreforum, added: “The government needs to look at the childcare support for low earners to make sure the system is uncomplicated, fair and progressive. Disadvantaged children should not be squeezed out of the best childcare settings.”