Expanded Childcare Scheme in England Faces Criticism Amid Rising Costs and Limited Access

Expanded Childcare Scheme in England Faces Criticism Amid Rising Costs and Limited Access

The recent expansion of government-funded childcare in England has divided families more than ever. So far, many are experiencing higher fees and decreased access, which is unfortunate given the initial promise of the initiative. The proposal would help working parents of kids as young as nine months. It’s been under fire from parents and childcare providers.

It’s truly disheartening,” said Jennifer, an Oxford, UK-based publishing professional. Unfortunately, she soon discovered that her nursery didn’t provide the free hours now available through the new scheme. She was really happy to have more money left over at the end of the month. She used the opportunity to highlight one big failure of the program.

“The nursery my child attends is simply not offering the free hours,” – Jennifer.

For Alec, a civil servant from Sheffield, it was a life-changing development. He remarked that the expansion had lowered his daycare costs by nearly 55%. He went on to characterize the initiative as an example of government policy that made a “very real, tangible, immediate positive impact” on his life.

Roo, a civil servant from Hampshire, brought a fresh angle to the discussion. She told them how the free childcare entitlement had failed to improve access for her family. She called nearly 15 nurseries looking for an open spot. Sadly, the only appointment she was offered was a Friday afternoon, which did not work with her job duties. The unavailability made her husband, a medical worker, take time off from work.

“The increased demand at nurseries means that they are less flexible now,” – Roo.

Roo’s nursery now has a two-plus-year waiting list and can only accommodate him with the few days of the week that he goes. This challenge is representative of a widespread problem for families looking for childcare across the country, particularly in rural areas.

Sarah, a Liverpool mum who spoke at the event, reflected Roo’s feelings, telling the audience that she had difficulty accessing her free childcare hours. With this pandemic, countless parents have suddenly had to do the same. Many families that were just above the eligibility line for free hours have changed their work patterns or budget to be able to meet the threshold set.

Amy, another parent, highlighted that many nurseries were increasing fees to mitigate rising operating costs despite the government’s expansion of the funded childcare offer.

“Increased funded hours mean nursery prices in our town have all risen, to cover the [funding] shortfall,” – Roo.

A recent survey conducted by the National Day Nurseries Association (NDNA) revealed that nurseries have raised fees by an average of 10% to offset these costs. In September 2025, Amy’s nursery increased their fees by 8%. This increase still added financial stress for families just trying to get by.

Jennifer explained that many nurseries, like her own, withdrew from providing free hours completely as a result of the changeable funding.

“They have a waiting list of over two years as they are popular but more importantly there is an acute shortage of providers. The funding does not cover the cost of the sessions, so the only way for them to cope would have been to put up base fees to cover the shortfall,” – Jennifer.

The former UK government had previously expected the childcare expansion to cost £4.1 billion a year by 2027/28. Just to keep up with inflation, the annual spend on our childcare entitlements is expected to hit approximately £8 billion by that year. Early years providers are now up in arms against the rollout of the funded childcare scheme, warning it is being rolled out underfunded amid soaring costs.

We’ve heard from countless parents frustrated by what they view as band-aid solutions to their childcare challenges. Jennifer panned the plan as simplistic and half-baked.

“I wish politicians would take a longer view and tackle this properly, rather than this sticking plaster which might make a good headline,” – Jennifer.

Parents are still very much in the trenches, dealing with real-life challenges of access and affordability of childcare. Most importantly, they are demanding systemic changes to address these pressing issues. Many nurseries have already gone bust due to the shortfall funding of “free” hours. As a consequence, they are driven to either increase fees or employ lower-paid staff with less experience.

While this important debate is ongoing, families need more options for quality, affordable, and flexible childcare that meet their needs today. These lived experiences, captured through parent testimonies, highlight the need for England to take a holistic approach to childcare provision.

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