Two thirds of the poorest families miss out on childcare as research warns the massive expansion in free provision risks failing the neediest households.
The Government is pushing to roll out up to 30 hours a week of free childcare for under fives to eligible parents from September 2025. But a report today warns the poorest families risk being left behind. Analysis from the Institute for Public Policy Research (IPPR) and Save the Children found that only a third (36%) of the poorest fifth of parents use formal childcare, compared to double that (73%) of the highest earning households.
Over two-thirds of parents of young children who work in professional jobs such as lawyers, doctors and architects use formal childcare, compared to less than half of parents with jobs such as cleaning, care work and hairdressing. Families also face a vast gulf in access to good quality childcare options, with those in deprived or rural areas most likely to struggle.
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The most deprived areas have 32% fewer places per child and 25% fewer places ranked Good by Ofsted compared to the most affluent areas. In Walsall, in the West Midlands, some three in four (73%) kids live in areas with poor access, followed by Bassetlaw (60%), in Nottinghamshire.
Rural areas have 31% fewer places and 29% fewer good places compared to inner cities and town centres. Children in Torridge, in Devon, also suffer from lack of provision (57%), along with Great Yarmouth (45%).
The report warned that at the current rate of decline – a drop of around 3,000 childminders per year – there will be none left by 2033. Experts also pointed to a slump in places in school-based nurseries, where the number of places has fallen by 14% since 2015/16 – equivalent to around 42,000 kids.
It comes as Keir Starmer made improving early years one of his key milestones to meet by the next election. The PM wants the proportion of children who arrive at primary school educationally and socially ready to rise from 67% to 75% by 2029.
Jodie Reed, associate fellow at IPPR, said: “The extension of funded childcare entitlements currently underway is unprecedented. “But our analysis shows that if the government doesn’t think differently about the delivery, it could leave the poorest children and families far behind – without access to decent quality provision which matches their needs – and the government far from reaching its Opportunity Mission goals to reduce poverty and narrow gaps in early childhood outcomes.”
She urged the Government to rethink childcare as a public service like schools, and to take a more proactive role in fixing problems in the market. Researchers called for non-for-profit nursery providers to be set up to rival private equity backed for-profit chains,
Town halls should also look at pooling funding to secure new childcare in the areas of greatest need, the report said. Ruth Talbot, Policy and Advocacy Adviser at Save the Children UK, said: “Childcare that is accessible and affordable is critical for families and while we welcome the recent expansion in provision, major reforms are still needed to fix the system.”
A Department for Education spokesperson said: “Giving every child the best start in life is crucial to our mission to break the unfair link between background and success, which is why we have set a clear milestone for tens of thousands more children to be school-ready at age 5.
“We are determined to create a reformed, sustainable early years system, delivering an increase in government-funded hours, thousands of school-based nurseries and improved early language and maths support.”
The 10 worst affected areas
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Walsall – 73% of children in the worst 10% of the country
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Bassetlaw – 60%
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Torridge – 57%
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Sunderland – 57%
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Hartlepool – 50%
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Great Yarmouth – 45%
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Hull – 41%
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South Staffordshire – 40%
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Wolverhampton – 39%
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Westmorland and Furness – 38%