According to Coram Family and Childcare’s annual survey, the cost of a part-time nursery place for a child under two in England has fallen by more than half compared to last year, while a full time place is 22 per cent cheaper than last year.
In contrast, a full-time nursery place for three and four-year-olds in England has increased by 9.7 per cent in a year.
The cost of a nursery place in Scotland and Wales has also risen as the expanded offer is not available there.
Findings from the survey reveal:
- A part-time (25 hours) nursery place for a child under two in England now costs an average of £70.51 per week, down by 56 per cent on 2024
- A full-time (50 hours) nursery place for a child under two costs an average of £238.95 per week, down by 22 per cent on 2024.
- A part-time nursery place for a two-year-old in England costs an average of £66.34 per week.
- A full time nursery place for a child under two costs an average of £238.95 per week.
- A full-time nursery place for three- and four-year-olds cost an average of £126.94 a week in England, a 9.7 per cent increase on last year.
- The cost of a part-time nursery place for three and four-year-olds in England is £64.09 per week at a nursery.
The survey also highlights the cost difference in a place for children from working families eligible for the funded offer compared to those that can’t access the funding – those not working or on very low incomes - warning that the policy could be impacting disadvantaged children.
It find families ineligible for the funded offer will pay £105 a week more than eligible families for a part-time place for a child under two, and £100 more for a two-year-old.
Responding, PACEY said that the Government needs to ‘urgently rethink the system and move towards a fairer, universal offer to ensure that all families have equal access to early education. ‘
In Scotland, a part-time nursery place for a child under two has increased by 7 per cent and in Wales, 10 per cent, compared to last year.
Childcare sufficiency
The survey also looks at availability of childcare. A total of 79 per cent of local authorities in England who took part said they have enough childcare for at least 75 per cent of children eligible for the expanded offer.
Eight in 10 English local authorities who responded to the survey reported having enough childcare for at least 75 per cent of children eligible for the disadvantaged two-year-old entitlement.
However, echoing trends from previous years, the report finds gaps in availability for children with special educational needs and disabilities (SEND). Just 29 per cent of local authorities in England who responded to the survey report having enough childcare for at least 75 per cent of children with SEND in their area.
Only 22 per cent of local authorities reported having enough childcare for at least 75 per cent of children in their area whose parents work atypical hours.
To ‘rebalance’ the system to enable all parents and carers can work and children have the best start in life during their early years, Coram Family and Childcare makes a number of calls to action for all governments, they include:
- Update the funding model to ensure rates cover the true cost of provision.
- Increase the Early Years Pupil Premium to the same rate as schools.
- Increase the value of early years SEND funding.
- Work towards provision of government-funded free meals in early years.
- Re-allocate the underspend from Tax-Free Childcare to other parts of the childcare system.
- Create a workforce strategy.
'The system needs to be rebalanced to ensure that all children have the best start in life'.
Lydia Hodges, head of Coram Family and Childcare, said, ‘This year’s Childcare Survey shows just how different the picture can be for families with funded support from the Government, and the new entitlements are a very welcome step towards making childcare affordable for working parents and easing the difficult choices around work and care that parents have faced for many years.
‘However, the system needs to be rebalanced to ensure that all children have the best start in life during their essential early years. Parents who are not eligible for the entitlements are unlikely to be able to meet the cost involved in giving their children the same amount of early education that other children get for free, and many children with special educational needs and disabilities are still finding it hard to get a place.
‘We call on the Government to commit to immediate and longer-term actions so that no child misses out on this vital boost to their outcomes’.
The National Day Nurseries Association (NDNA) said that while the reduction in fees for the youngest children in England is ‘great news, the cost of delivering places has not reduced, it is just being subsidised by providers.’ Similarly, its chief executive Purnima Tanuku stressed that the reason fees have risen in Scotland and Wales is because funding rates have not increased.
Education secretary Bridget Phillipson commented, ‘This survey highlights the real difference the expanded childcare entitlements are making, with much more to come from September as Government funding increases from 15 to 30 hours a week of funded childcare.’
